Gulf Insurance Group receives upgraded credit rating by AM Best
- AM Best upgraded the Long-Term Issuer Credit Rating of Gulf Insurance Group B.S.C. (c) to 'a+' from 'a' on October 25, 2024.
- The ratings reflect GIG Gulf's strong balance sheet, solid operating performance, and the implicit support from its parent company.
- The stable outlook and recent upgrade demonstrate GIG Gulf's resilient market position and bolstered financial standing.
In Bahrain, AM Best has upgraded the Long-Term Issuer Credit Rating of Gulf Insurance Group B.S.C. (c) to 'a+' (Excellent) from 'a' (Excellent) as of October 2024. This decision is supported by the company's very strong balance sheet and stable outlook, reflecting its strong operating performance and appropriate enterprise risk management practices. The upgrade acknowledges the implicit support provided by its parent company, Gulf Insurance Group K.S.C.P., enhancing GIG Gulf's financial flexibility and capital resources. The ratings also benefit from GIG Gulf's conservative asset allocation, low reliance on reinsurance, and prudent reserving practices. Historically, the company has demonstrated a steady earnings performance, influenced by both underwriting and investment returns; in 2023, it reported an investment income of BHD 12.6 million, lending support to its underwriting profits. Its business positioning remains robust, holding a top five market position across core regions including the United Arab Emirates, Bahrain, and Oman. This company's strategic assessment includes ownership in a Saudi Joint Stock Company, reflecting both geographical and operational diversification. AM Best recognizes GIG Gulf's relatively sophisticated risk management capabilities as contributing factors to its current ratings. Overall, the favorable ratings serve as indicators of the company's sound operational framework and stability in the competitive insurance market. As GIG Gulf continues to strengthen its market presence and operational strategies, the outlook remains positive, indicating confidence in its future performance and resilience in the insurance sector.