LONDON-Thursday 11 July 2019 [ AETOS Wire ]
(BUSINESS WIRE)--
Bahrain was once considered a centre of excellence for Middle East
insurance and reinsurance, but its position as a hub has been overtaken
by some of its neighbours, according to a new AM Best report.
The Best’s Market Segment Report,
titled, “Bahrain’s Insurance Market’s Shine Fades, but Segment Still
Prospering,” states Bahrain used to possess the most comprehensive and
forward-looking regulatory environment compared with some of the other
GCC countries; however, it appears to have stagnated, with limited
innovation or change. Meanwhile, Middle East jurisdictions have
developed their own risk-based regimes, whilst Bahrain continues to
operate on slightly antiquated rules.
Despite this,
the report states that Bahrain’s insurance market continues to thrive
and remains the domicile of choice for a number of foreign operations.
AM Best notes that in particular, the takaful segment in Bahrain
continues to evolve. Bahrain was the first country in the Middle East to
establish specific takaful regulations and now has the highest level of
takaful penetration in the Middle East, excluding Saudi Arabia.
AM Best’s
research also examines merger and acquisition (M&A) activity and
predicts industry consolidation will continue. Salman Siddiqui,
director, said: “The Bahraini market has seen a number of M&A deals
in recent years, with companies looking to obtain market share through
inorganic growth. While AM Best would not be surprised to see more
M&A activity as companies seek to consolidate their market positions
through acquisition, a number of barriers still remain.”
AM Best’s
ratings for Bahraini-domiciled (re)insurers have seen positive and
negative movement over the last 18 months. Mahesh Mistry, senior
director, said: “Broadly speaking, (re)insurers domiciled in Bahrain
continue to display excellent levels of risk-adjusted capitalisation.
Additionally, Bahraini insurers have improved their levels of enterprise
risk management and risk culture.”
To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=287319.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 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/20190708005775/en/
Contacts
Salman Siddiqui
Director, Analytics
+44 20 7397 0331
salman.siddiqui@ambest.com
Mahesh Mistry
Senior Director, Analytics
+44 20 7397 0325
mahesh.mistry@ambest.com
Yvette Essen
Director, Research, Communications
& Media – Europe, Middle East & Africa
+44 20 7397 0322
yvette.essen@ambest.com
Edem Kuenyehia
Director, Market Development &
Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com
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