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GIG Gulf, a leading insurance provider in the MENA region, said AM Best affirmed its ‘A’ (Excellent) Financial Strength Rating (FSR) and ‘A’ (Excellent) Long-Term Issuer Credit Rating (Long-Term ICR), For the second year in a row.
The outlook assigned to these credit ratings (ratings) is stable.
The rating reflects the financial strength of GIG Gulf’s operations in four key markets, Bahrain, Oman, Qatar and the United Arab Emirates. AM Best called the company’s balance sheet strength assessment “very strong,” pointing to its risk management capabilities and strong operating performance.
In addition, GIG Gulf’s strong profitability, solid underwriting and track record of minimal reinsurance reliance are recognized by credit ratings, especially compared to regional peers.
Paul Adamson, CEO of GIG Gulf, said: “Following the challenges posed by the pandemic, we have successfully transitioned our brand from AXA to GIG while maintaining our commitment to customers and distributors. To simplify the customer experience and accelerate the pace of innovation in the local insurance market , we have successfully completed our digital transformation.
“We have maintained a strong financial position, maintained continued investment in the region, and put the well-being of our employees first, and we were able to achieve our goal of protecting people at a critical time. As part of the largest regional insurance group, We are proud of this track record and are enthusiastic about new growth prospects and added value for our customers and partners in the Gulf region.”
Continued profitability
AM Best’s assessment of GIG Gulf’s operating performance also takes into account its historical overall profitability, with a five-year (2017-2021) weighted average return on equity of 11.9%. During the same period, the company’s earnings were supported by a weighted average combined ratio of 95.6%.
geographical distribution
AM Best’s assessment also took into account the risk distribution of GIG Gulf in four different GCC markets. Bahrain-based GIG Gulf’s earnings also come from Qatar, Saudi Arabia and the United Arab Emirates — all of which carry “medium risk.” GIG Gulf has multiple business lines and operates across the region, ranking in the top five in each of its major markets.
According to the AM Best Ratings report, all GIG Gulf investments are made in USD or USD-pegged currencies, providing stability during global uncertainties and economic cycles. In 2022, GIG Gulf is actively rebranding its business from AXA Insurance (Gulf) while maintaining its competitive market position. – arab trade news agency
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