AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to 'bbb+' from 'bbb' and affirmed the Financial Strength Rating (FSR) of B++ (Good) of
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable.
The Credit Ratings (ratings) reflect Solidarity Bahrain's balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings consider, in the form of lift, Solidarity Bahrain's strategic importance to its parent company, Solidarity Group Holding BSC (SGH), a leading provider of Islamic insurance solutions in
Solidarity
AM Best expects Solidarity Bahrain's operating performance to remain adequate over the underwriting cycle, supported by positive technical earnings and moderate investment income. The company reported a healthy return on equity (ROE) of 10% in 2018, supported by corrective actions taken by management to improve the profitability of AAIC's legacy operations. AM Best expects Solidarity Bahrain's ROE to improve moderately in the medium term, driven by a continued focus on technical discipline.
Solidarity
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specialising in the insurance industry. The company does business in more than 100 countries. Headquartered in
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