AM Best affirms ‘A’ Excellent rating to GIG Gulf for the second consecutive year
With operations across the UAE, Oman, Bahrain and Qatar, AM Best highlights GIG Gulf’s ‘strongest level’ capital adequacy, regional market diversification and minimal foreign exchange risk.
Dubai, UAE, 20 October 2022: GIG Gulf, one of the largest insurance providers in the MENA region, announced today that AM Best affirmed its Financial Strength Rating (FSR) of “A” (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “A” (Excellent), for the second year in a row. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect the financial strength of GIG Gulf for its operations across its four key markets of Bahrain, Oman, Qatar and the UAE. AM Best refers to the firm’s balance sheet strength assessment as being ‘very strong’, pointing to its risk management capabilities and strong operating performance.
Additionally, GIG Gulf's track record of strong profitability, solid underwriting, and minimal reliance on reinsurance is recognised by the credit rating, particularly when compared to regional peers.
Paul Adamson, CEO of GIG Gulf, said, “Following the challenges of the pandemic, we smoothly transitioned our brand from AXA to GIG whilst maintaining our commitment to our customers and distributors. To streamline our customer experience and expedite the pace of innovation for the local insurance markets, we have successfully completed our digital transformation. We have remained financially strong, maintained ongoing investments in the region, and with the well-being of our employees at the forefront, we were able to materialise our purpose to protect people in the moments that matter. As part of the largest regional insurance group, we are proud of this track record and enthusiastic about the new growth prospects and added value for our customers and partners across the Gulf.”
AM Best’s assessment of GIG Gulf’s operating performance also considers its historic overall profitability, which has delivered a five-year (2017-2021) weighted average return-on-equity ratio of 11.9%. The company’s earnings have been supported by a weighted average combined ratio of 95.6% over the same period.
AM Best’s assessment also considers GIG Gulf’s risk-spread across four distinct markets in the GCC. Domiciled in Bahrain, GIG Gulf earnings also come from Qatar, Saudi Arabia and the UAE – countries all carrying ‘moderate risk’. GIG Gulf has a variety of business lines and operates across the region, holding a top-five position in each of its key markets.
According to the AM Best rating report, all GIG Gulf investments are in US Dollars or US Dollar-pegged currencies, providing stability during times of global uncertainty and economic cycles. In 2022, GIG Gulf proactively rebranded its operations from AXA Insurance (Gulf) whilst maintaining its competitive market position.