MANAMA: Standard & Poor's Ratings Services has assigned its long-term 'BBB' counterparty credit and insurer financial strength ratings to Bahrain-based Takaful International Company (TIC).
The outlook is stable.
"The ratings on Bahrain-based composite insurer TIC reflect good operating performance and good financial flexibility," said Standard & Poor's credit analyst Kevin Willis.
"These positive factors are partially offset by the absolute small size of the company, operating in the relatively small market of Bahrain, and only adequate capitalisation at the current level," he added.
"The stable outlook reflects our expectation that TIC will reinforce its current capitalisation next year, thereby supporting its growing business base and expanding competitive position," said Mr Willis.
Earnings will continue to be good, with the takaful fund continuing to deliver surpluses. The assets will reflect good liquidity and provide cover to technical and other liabilities. TIC's competitive position will grow within Bahrain.
Negative rating action would be prompted by failure to strengthen capitalisation in the first half of next year, to a position where capital adequacy was strong. Negative rating action would also result from any weakening of its earnings or competitive position.