AM Best upgrades Solidarity’s Long-Term Issuer Credit Rating to bbb+
MANAMA, BAHRAIN –19 January, 2020 –Solidarity Bahrain B.S.C, one of the largest insurance companies in Bahrain and a subsidiary of Solidarity Group Holding, announced that 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) with a stable outlook. The Long-Term ICR upgrade reflects the improvement in the business profile, achieved through a stronger competitive position in Bahrain, following the integration of Al Ahlia Insurance Company, acquired in 2016.
According to AM Best’s official communique, this credit rating reflects Solidarity Bahrain’s balance sheet strength, which AM Best categorize as very strong, and underpinned by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), its good liquidity, and its financial flexibility, with access to the debt and the equity markets and appropriate enterprise risk management framework. Further, AM Best stressed that 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 Al Ahlia legacy operations.
On this occasion Mr. Ashraf Bseisu, Solidarity Group Chief Executive and Solidarity Bahrain’s Vice Chairman to the Board of Directors said: “We are immensely proud that #TeamSolidarity is continuously striving to maintain and enhance the international recognition and accreditation of its major operating platform. Solidarity Bahrain, has successfully positioned itself as the leading insurer in the country by providing customer-friendly e-channels and elevating its customer experience to the highest standards. He also added: “This accomplishment is another milestone in Solidarity Bahrain’s journey that highlights its great achievements and attainments as a differentiator in the kingdom”.
For his part, Mr. Jawad Mohamed, Solidarity Bahrain Chief Executive Officer said: “We are honored to announce that Solidarity Bahrain has been granted a stable and highest rating among Bahraini insurance companies with operations limited within Bahrain.” He also added: “Solidarity Bahrain has showcased its commitment and stability through a challenging market”.