Solidarity Bahrain, one of the largest insurance companies in Bahrain and a subsidiary of Solidarity Group Holding BSC, has secured a renewed vote of confidence from the international rating agency AM Best.
The company maintained its positive ratings of B++ (Good) for financial strength and BBB+ (Good) for long-term issuer credit, both with a stable outlook.
The current rating action is the outcome of AM Best’s annual review of Solidarity Bahrain, which also considers favourably the acquisition of Al Hilal Life and Al Hilal Takaful by Solidarity Bahrain, which is expected to strengthen Solidarity Bahrain’s position in the domestic market, enhance its product diversification by expanding its life segment and increase its geographical diversification via Al Hilal’s Kuwaiti operations.
The ratings reflect Solidarity Bahrain’s balance sheet strength, which AM Best categorises as very strong and is underpinned by Solidarity’s risk-adjusted capitalisation being at the strongest level, as measured by Best’s capital adequacy ratio (BCAR), which remains comfortably above the minimum required threshold for the strongest assessment following the acquisition of Al Hilal.
Strength
In the agency’s view, Solidarity Bahrain’s balance sheet strength benefits from a very good level of liquidity and good financial flexibility.
Solidarity Bahrain chief executive Jawad Mohammed said: “We are delighted to have received yet another positive rating affirmation by the international rating agency, AM Best.
This rating is a testament to the strong foundation we have built on our company’s long-term strategic vision and the continuous hard work by #TeamSolidarity in delivering excellence in the insurance industry.
“Solidarity Bahrain remains committed to capitalising on growth opportunities and further enhancing its business profile, as well as delivering exceptional insurance solutions and exceeding the expectations of our customers, partners and stakeholders.”
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