CBB grants third licence to ACE Group

The new licence allows ACE American Insurance Company, a US subsidiary of ACE Group, to establish a Branch office, which will underwrite commercial property and casualty insurance and reinsurance from its regional hub in Bahrain.

The new operation is in addition to a Representative Office, established in November 2006, of ACE INA Services UK, and ACE Arabia Insurance Company, a locally incorporated insurance firm, established in Bahrain in 1989.

ACE Group is one of the world's largest global property and casualty insurance and reinsurance organizations, with operating subsidiaries in more than 50 countries. Headed by ACE Limited, a component of the S&P 500 stock index, the Group recorded a net income of US$2.3 billion for 2006.

'The CBB welcomes the expansion of ACE Group's operations in Bahrain,' said Mr. Ahmed Al Bassam, Director, Licensing & Policy, at the CBB.

Bahrain has a well-diversified insurance industry and the Kingdom provides an excellent regional base for international insurance services providers wishing to do business in the MENA region and beyond, he said.

According to a new study by Standard & Poor's, the region's insurance market is currently valued at US$4.6 billion but could be worth US$20 billion, thus offering tremendous untapped potential for insurance providers.

'The Middle East region is an under-insured but fast-growing region, where structural reforms and massive infrastructure and industrial developments are creating new opportunities for insurance companies,' said Mr. Al Bassam.

Mr. Giles Ward, ACE's Bahrain-based Regional Director for the MENA region, said:

'We are delighted to have been granted this licence and would like to thank the CBB for their assistance and guidance throughout this process. The establishment of this branch and our ability to write local business with the backing of strong A+ financial ratings is a key part of the Group's strategy to develop its presence in the region.'

The Bahrain Branch will write both domestic business and facultative reinsurance throughout the Middle East and North Africa (MENA) region, initially focusing on the areas, which will include oil and gas, power generation, large property risks and construction.

'The establishment of a branch office in Bahrain shows ACE's commitment to the MENA region. We see a great potential for our Bahrain Branch to unlock the potential for growth in the region and provide local solutions, reinforced by ACE's global network of specialist expertise,' said Mr. John Keogh, Chief Executive Officer of ACE Overseas General.