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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Removes From Under Review With Negative Implications, Affirms Credit Ratings of Life Insurance Corporation (International) B.S.C. (c)

AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Life Insurance Corporation (International) B.S.C. (c) (LICI) (Bahrain). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings were placed under review with negative implications following the uncertainty regarding LICI’s financial position under IFRS 17 in 2024. The ratings have been removed from under review, as AM Best has now completed its analysis of LICI based on the audited IFRS 17 year-end financial statements for 2024, which also include the restated 2023 results.

The ratings reflect LICI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and weak enterprise risk management (ERM).

LICI’s balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). The capital adequacy remains volatile and sensitive to financial markets, with fluctuations in regulatory solvency observed during recent years. However, AM Best expects the company’s prospective capital adequacy to demonstrate greater resilience supported by internal capital generation as it executes its strategic growth plan.

LICI has historically had an adequate, albeit volatile, operating performance, primarily due to movements in interest rates. More recent performance has shown a positive turnaround with the company reporting a return on equity (ROE) of 9% in fiscal-year 2024 under IFRS 17, largely driven by strong investment performance. AM Best expects LICI’s operating performance to remain adequate over the medium term.

LICI benefits from its niche market position, mainly targeting India’s expatriate community in the Gulf Cooperation Council states by leveraging the Life Insurance Corporation of India group’s strong brand and the portability of its policies back to India. The company has also started to execute its strategy of shifting away from traditional endowment products in favour of less capital-intensive unit linked products. However, following a recent spike in the maturities of its traditional life products and challenging market conditions, LICI has found it difficult to return to its previous growth levels.

LICI’s ERM framework is assessed as weak, which has been evident through poor capital management capabilities in recent periods and material restatements of 2023 financial results under IFRS 17. Furthermore, the company’s risk management has proven to be more reactive than proactive, with remedial actions having taken extended periods of time to be executed. AM Best expects LICI to continue to formalise and enhance its risk management framework and capabilities.

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.

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