GIG Long-Term Issuer Credit Ratings upgraded to “a+” by AM Best

Press release

Published October 7th, 2024 - 09:23 GMT

Financial Strength Rating affirmed at “A” with stable outlook

Mr. Khaled Al Sanousi, Group Executive Manager - Corporate Comms. & Investor Relations

Kuwait City, 7 October 2024: Gulf Insurance Group (GIG), one of the leading insurance service providers in the Middle East and North Africa, has received an upgrade in its Long-Term Issuer Credit Ratings (ICR) from “a” (Excellent) to “a+” (Excellent) from AM Best, while affirming its Financial Strength Rating at “A” (Excellent). This rating applies to both the Group and its subsidiary, Gulf Insurance and Reinsurance Company K.S.C. (Closed) (GIG-Kuwait). The outlook for these ratings is stable.

The ratings reflect GIG’s strength in terms of financial and operating performance as well as implicit support from GIG’s ultimate parent Fairfax Financial Holdings Limited which recently increased its ownership in GIG to 97.1%. Fairfax support includes access for GIG to substantial capital resources and shared expertise in areas of risk management, reinsurance, actuarial and other best practices.

Commenting on the upgrade, Mr. Khaled Al Sanousi, Group Executive Manager - Corporate Comms. & Investor Relations, said: “GIG continues to execute its long-term strategy to ensure sustained profitability while leading the industry with innovative, customer-centric solutions and a focus on digital transformation. Our strong performance is bolstered by the expansion of our operations across the MENA region and the diversification of our business lines, all underpinned by a robust risk management framework.”

AM Best highlighted the strength of GIG’s consolidated balance sheet, noting its very strong risk-adjusted capitalization, which is supported by a comprehensive reinsurance program and a conservative investment strategy. The group’s financial strength is further enhanced by its diversified regional footprint and a history of prudent acquisitions, including the successful integration of GIG Gulf in 2021.

GIG is one of the largest and most diversified insurance groups in the MENA region, with leading positions in markets such as Kuwait, Jordan, Bahrain, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Egypt, Turkey, and Algeria. GIG reported insurance service revenues of KWD 0.82 billion (USD 2.7 billion) in 2023, reflecting the group's ongoing commitment to growth and operational excellence

Background Information

Gulf Insurance Group (GIG)

Gulf Insurance was established in 1962.It is a public shareholding company listed on Boursa Kuwait and a consistent market leader in Kuwait in terms of premiums written. The Group is among the largest and most diversified insurance groups in the Middle East and North Africa region. Gulf Insurance Group is one of the leading private insurers (By Gross Premium Written) with a strong competitive market position in Kuwait, Jordan, Bahrain and Egypt. Furthermore, the Group has operations in UAE, Saudi Arabia, Turkey, Algeria, Oman, Qatar, Syria, Iraq and Lebanon. The Group's both revenue and earnings are well diversified geographically.