Middle East: S&P says insurers currently broadly unaffected by Israel-Hamas war
Source: Middle East Insurance Review | Jun 2024
S&P expects credit conditions for rated insurers in Gulf Cooperation Council (GCC) countries to remain broadly stable in 2024, supported by robust capital buffers and adequate growth and earnings prospects. Most rated GCC insurers—many of which are among the largest entities in the market—are well capitalised; this supports S&P’s strong financial strength ratings on them.
A full-scale conflict between the states in the Middle East is not part of S&P’s base-case scenario. In S&P’s view, such a conflict would be economically, socially, and politically destabilising for the entire region, including insurance markets. Growth prospects and earnings of regional insurers could be negatively affected by adverse macroeconomic effects on trade, financial flows and tourism.
If a wider or prolonged conflict were to develop, against expectations, S&P anticipates that its ratings on insurers with weaker capitalisation or those with material exposure to high-risk assets could come under pressure. M