AM Best Upgrades Issuer Credit Rating of Life Insurance Corporation (International) B.S.C. (c)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb+” (Fair) from “bb” (Fair) and affirmed the Financial Strength Rating of B (Fair) of Life Insurance Corporation (International) B.S.C. (c) (LICI) (Bahrain). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect LICI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and weak enterprise risk management (ERM). The ratings also reflect rating enhancement, in the form of lift, from its ultimate shareholder, the Republic of India.
The upgrade to the Long-Term ICR reflects stability in the company’s risk-adjusted capitalisation over the recent years, which was comfortably within the strongest level in 2025, as measured by Best’s Capital Adequacy Ratio (BCAR), and the increase in its capital and surplus. AM Best expects LICI’s BCAR to remain at the strongest level, driven by its conservative investment strategy and sustained internal capital generation.
LICI’s operating performance is adequate, albeit subject to some volatility, primarily due to movements in interest rates. The company has reported a three-year (2023-2025) average return-on-equity ratio of 8% under IFRS 17, with the performance primarily driven by investment results. The underwriting results in 2025 were negatively impacted by the establishment of a provision for future bonuses on participatory products, in line with the reporting requirements. AM Best expects LICI’s operating performance to remain adequate over the medium term.
