AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of SNIC Insurance B.S.C. (c) (SNIC) (Bahrain). The outlook of these Credit Ratings (ratings) is negative.

The ratings reflect SNIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.

SNIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects SNIC’s BCAR to remain at the strongest level prospectively, supported by a well-diversified investment portfolio, consisting of investments held mainly in the Untied States, as well as a strong reinsurance panel and low underwriting leverage. Increased asset risk is driven by the company’s strategic holding in Wataniya Insurance Company (Wataniya), an affiliated publicly listed company. However, AM Best notes that the size of this holding has materially reduced in recent years with the support of SNIC’s ultimate parent, E.A. Juffali & Brothers.

SNIC’s underwriting performance moderately strengthened in 2024, with a negative insurance service result of BHD 222,000 (USD 589,000), compared to a negative result of BHD 579,000 (USD 1.5 million) in 2023. This reflects management’s ongoing efforts to address its underwriting performance and is evidenced by a year-on-year improvement in the net-gross combined ratio, which AM Best calculated at 109.7% in 2024 (2023: 113.1%). Despite challenging market conditions, AM Best expects SNIC’s stringent underwriting approach to gradually reduce its combined ratio over the next few years. Overall profitability remains susceptible to volatility in investment income, driven by the company’s holdings in Wataniya.

SNIC reported insurance service revenue of BHD 12.8 million (USD 34.0 million) in 2024, representing a modest 1.2% increase in the prior year. The limited business profile assessment reflects SNIC’s concentration by geography and product, as the company solely operates in the highly competitive and relatively small Bahrain market, where it focuses on motor and medical insurance. The company has invested in innovative technological customer solutions to enhance its profile; SNIC has seen material increases in revenue generated via these digital channels over recent years.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251215927890/en/

Patrick McCrystal, FIA
Financial Analyst
+44 20 3808 2988
patrick.mccrystal@ambest.com

Jessica Botelho-Young, CA
Director, Analytics
+44 20 7397 0370
jessica.botelho-young@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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