Bahrain Kuwait Insurance Company (BKIC) has a track record of strong operating performance, notes AM Best.
In 2025, BKIC generated a return on equity of 10.4% and a net-net combined ratio of 97.4% (both as calculated by AM Best). BKIC’s underwriting profitability has supported its overall earnings historically, with the company generating technical profits in each of the past five years; over the same period, investment returns also have contributed toward profitability.
During 2025 and the first half of 2026, the company was impacted by several large losses, which were largely covered by reinsurance. AM Best expects the company to maintain its strong operating results driven by underwriting performance and investment income over the medium term.
Ratings affirmed
AM Best has affirmed the Financial Strength Rating of ‘A-’ (Excellent) and the Long-Term Issuer Credit Ratings of ‘a-’ (Excellent) of BKIC and its subsidiary, Takaful International Company (TIC), both of which are domiciled in Bahrain. The outlook of these credit ratings is stable.
The ratings reflect BKIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in lift from BKIC’s parent company, Gulf Insurance Group, due to the strategic importance of BKIC to the group.
TIC’s ratings consider its strategic importance to BKIC. TIC provides a platform to underwrite takaful business domestically and increases the overall operation’s market share and product offerings in Bahrain.
Balance sheet strength
BKIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR).
BKIC benefits from a relatively conservative asset allocation and a reinsurance programme placed mostly with reinsurers of excellent credit quality, which mitigates the elevated credit risk associated with the company’s high cessions on commercial risks.
AM Best expects BKIC’s risk-adjusted capitalisation to be maintained at the strongest level.
Business profile
BKIC commands a leading position in Bahrain’s insurance market and a strong competitive position in Kuwait. BKIC reported insurance service revenue of BHD117.3m [$311.3m] in 2025 (2024: BHD114.2m). The company underwrites a well-diversified book of business on a gross basis, although its retained portfolio is concentrated in the motor and medical business lines.