AM Best confirms rating of SNIC Insurance

AM Best has confirmed SNIC Insurance's (Bahrain) B+ (good) financial strength and “bbb-” long-term credit ratings. The outlook remains negative.

The rating reflects the company's strong balance sheet, limited business profile and marginal enterprise risk management.

SNIC's operating performance has been deteriorating in recent years, largely due to volatile investment income coupled with weak underwriting results.

Despite a solid 4.9 million BHD (13 million USD) net profit in 2023, the insurer recorded a negative insurance services result of 579 000 BHD (1.5 million USD) and a combined ratio of 113.1%.

Insurance revenue stood at 12.8 million BHD (33.9 million USD) in 2023, down 7% compared with the previous year.

Founded in 1974, SNIC Insurance is a subsidiary of the Saudi conglomerate E.A. Juffali & Brothers and Munich Re.