AWRIS ratings affirmation underscores stable Bahrain marine war risks profile

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AWRIS Bahrain war risk ratings

Highlights

AM Best affirms AWRIS's Financial Strength Rating at B++ and Long-Term Issuer Credit Rating at 'bbb+' with stable outlook, citing very strong balance sheet and prudent risk management.
AWRIS reports a five-year weighted average combined ratio of 68.2%, return on equity of 8.2%, and half-year 2026 profit of USD 11.6 million despite a USD 1.75 million conflict-related net loss.
War premium rates and demand drive substantial premium growth for AWRIS in 2026, while its overall scale remains relatively limited by international standards.

AM Best assessment and rating factors

As reported by AM Best, Arab War Risks Insurance Syndicate's Financial Strength Rating remains at B++ and its Long-Term Issuer Credit Rating stays at "bbb+", with a stable outlook. The agency says the affirmation reflects very strong balance sheet strength, strong operating performance, a limited business profile and appropriate enterprise risk management.

AM Best says AWRIS' balance sheet strength is supported by risk-adjusted capitalisation that remains comfortably above the threshold for its strongest assessment under Best's Capital Adequacy Ratio. The assessment also benefits from a relatively conservative investment allocation, low net underwriting leverage and prudent reserving practices.

The agency notes that AWRIS depends heavily on retrocession coverage to provide capacity to members and manage volatility from large losses. Even so, AM Best expects the syndicate to maintain access to the reinsurance capacity it needs because of its record of robust underwriting profitability and strong relationships with multiple reinsurance counterparties.

Regional demand growth and operating performance

AWRIS posts a five-year weighted average combined ratio of 68.2% for 2021 to 2025 and a return on equity of 8.2%, metrics that AM Best considers supportive of a strong operating performance assessment. Its underwriting results are aided by low loss ratios, with a five-year weighted average loss ratio of 2.2%.

For half-year 2026, the syndicate reports profit of USD 11.6 million, including a net loss of USD 1.75 million arising from the ongoing conflict in the region. Results for the period improve from half-year 2025 in both underwriting and investment income.

AWRIS remains a niche underwriter of marine war risks across the Middle East and North Africa for its members. AM Best says premium growth is substantial in 2026 as war premium rates and demand increase during the ongoing conflict, although the syndicate's scale remains limited by international standards despite diversification across members and recent additions to its membership base.

We have also analyzed the IMF growth outlook, which flagged Middle East conflict as a key risk to regional prospects.

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