A.M. Best Downgrades Ratings of Medgulf Bahrain and Its Main Subsidiary
The rating downgrades to Medgulf Bahrain and Medgulf KSA reflect deterioration in the capital position at both of these entities. This follows reserve strengthening at Medgulf KSA, which has led to a material underwriting loss recorded in the first half of 2015. In addition, risk-adjusted capitalisation at both of these entities has trended downwards over the past two years due to adverse reserve development booked in 2013, following a regulatory shift in reserving practices, coupled with elevated levels of underwriting growth. Going forward, it is A.M. Best’s expectation that Medgulf Bahrain will look to rebuild its capital position through strong retained earnings and controlled growth in underwriting. However, Medgulf KSA’s standalone risk-adjusted capitalisation is expected to remain weak with any further deterioration in capital adequacy likely to drive downward pressure on the current ratings.
The rating affirmations on Medgulf Lebanon reflect the company’s market leading position in
The ratings of all Medgulf entities continue to benefit from the financial strength of the group. The ratings of Medgulf KSA and Medgulf
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
This press release relates to rating(s) that have been published on
Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
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