Moody’s Investors Service upgrades GIG’s Financial Strength Rating to “A2”

Moody’s Investors Service upgrades GIG’s Financial Strength Rating to “A2”

Kuwait City: Gulf Insurance Group (GIG), one of the leading insurance service providers in the Middle East and North Africa, announced that Moody’s Investors Service has upgraded the Insurance Financial Strength Rating (IFSR) of Gulf Insurance Group (KSCP) and its core subsidiary, Gulf Insurance and Reinsurance to “A2” from “A3” with a revised outlook to “Stable” from “Positive”.

This rating upgrade reflects GIG’s leading position in its target markets with strengthened business profile, earnings and assets diversification as well as its well established brand recognition.

The rating agency also considers for this upgrade GIG’s solid financial performance for the year 2022, which was the first full fiscal year following the complete integration of GIG-Gulf (previously AXA-Gulf) operations in United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Oman, cementing GIG’s standing as a “Regional Insurance Powerhouse”.

The smooth integration of these operations has further aided the Group’s business profile by strengthening its product offerings and geographic diversification away from previous concentration in Kuwait. The agency considers this smooth integration is an important driver for the rating upgrade that was implemented as planned, minimizing any execution risk.

The agency emphasizes on GIG’s excellent risk management and governance framework as a key credit strength and anticipates improving