AM Best Affirms Credit Ratings of Gulf Insurance Group (Gulf) B.S.C. (c)

Business Wire

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Gulf Insurance Group (Gulf) B.S.C. (c) (GIG Gulf) (Bahrain). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GIG Gulf’s 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 Gulf’s parent company, Gulf Insurance Group K.S.C.P., due to the strategic importance of GIG Gulf to the group.

GIG Gulf’s balance sheet strength assessment reflects its risk-adjusted capitalisation, which was comfortably at the strongest level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). GIG Gulf’s balance sheet benefits from its low reliance on reinsurance, conservative asset allocation and prudent reserving practices. AM Best expects GIG Gulf’s risk-adjusted capitalisation to be maintained at the strongest level.

GIG Gulf’s operating performance assessment considers the company’s history of strong overall profitability. In 2024, GIG Gulf reported a post-tax profit of BHD 17.0 million (USD 45.5 million), translating to a return on equity of 10.7%. Historically, the company’s earnings have been supported through both investment and underwriting returns. In 2024, investment results bolstered overall profitability, contributing to almost 80% of post-tax profits following lower underwriting returns; this was the result of the Gulf Cooperation Council flood events in 2024, and higher claims experience. GIG Gulf’s underwriting results have demonstrated improvement over the first six months of 2025, due to the company being focused on higher margin products and exiting from poorly performing business. The company’s combined ratio is expected to return to a good level in the coming years.

GIG Gulf’s business profile assessment reflects its established position, commanding a top five position based on net insurance service revenue within each of its core markets: the United Arab Emirates, Bahrain and Oman. Additionally, the company has a 50% ownership stake in Gulf Insurance Group (A Saudi Joint Stock Company) in Saudi Arabia. GIG Gulf’s assessment also reflects its moderate level of diversification by geography and line of business.

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.