AM Best Affirms Credit Ratings of Gulf Insurance Group K.S.C.P. and Gulf Insurance and Reinsurance Company K.S.C. (Closed)

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of "a+" (Excellent) of Gulf Insurance Group K.S.C.P. (GIG) and Gulf Insurance and Reinsurance Company K.S.C. (Closed) (GIG-Kuwait) (both domiciled in Kuwait). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GIG's consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also factor in lift from GIG's ultimate parent company, Fairfax Financial Holding Limited (Fairfax) [TSX: FFH], due to the strategic importance of GIG to Fairfax.

GIG-Kuwait is a composite insurer with a leading position in Kuwait's insurance market. The company is strategically important to GIG and integrated into its operations.

GIG's balance sheet strength assessment is underpinned by consolidated risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), which AM Best expects will remain comfortably above the threshold for the strongest assessment level. GIG's balance sheet strength benefits from a comprehensive reinsurance programme and a relatively conservative investment strategy. The group's balance sheet is exposed to a moderate level of financial leverage, which is projected to reduce over the medium term. At the same time GIG is expected to closely manage its liquidity position.

GIG is amongst the largest and most diversified insurance groups in the Middle East and North African (MENA) region. GIG holds a leading market position in Kuwait, Bahrain and Jordan and is among the top players in Saudi Arabia, the United Arab Emirates, Qatar, Oman, Egypt, Turkey and Algeria. The group has profitably grown its footprint across the MENA region in recent years through organic and inorganic growth, reporting insurance service revenue of KWD 847 million (USD 2.8 billion) in 2024, and developing its capabilities to service the region through regional accounts.

The group has a record of strong operating performance and in 2024 reported post-tax profits of KWD 31.8 million (USD 103.5 million), equating to a return on equity of 8.4%, as calculated by AM Best. Earnings for the year 2024, were supported by positive underwriting and investment results, with a net investment return of 6.7%, as calculated by AM Best. GIG reported healthy results for the first six months of 2025, with a post-tax profit of KWD 16.0 million.

GIG's ratings benefit from the favorable financial flexibility and significant capital resources of Fairfax. In addition, GIG benefits from shared resources and expertise from within the wider group.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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