S&P Global Ratings (S&P) has raised its long-term issuer credit and insurer financial strength ratings on Gulf Insurance Group (GIG) and Gulf Insurance and Reinsurance Co to 'A+' from 'A'. The outlook on all ratings is 'Stable'.
At the same time, S&P raised its issue rating on GIG's Tier 2, junior, subordinated, perpetual debt to 'A-' from 'BBB+'.
S&P says that its rating action on GIG follows that on its parent, Fairfax Financial Holdings (FFH). On 11 June 2025, S&P raised its rating on FFH to 'A-' from 'BBB+', as FFH built a very strong and globally diverse competitive position through organic growth and strategic acquisitions, while leveraging favorable re/insurance pricing.
FFH's core re/insurance operating subsidiaries are rated 'AA-'. S&P views GIG as a strategically important subsidiary of FFH, meaning GIG could benefit from up to three notches of uplift for group support from FFH, subject to a one-notch cap below the group credit profile. Consequently, S&P’s 'A+' rating on GIG now incorporates a one-notch uplift above its 'a' stand-alone credit profile.
GIG's strategic group status reflects S&P’s view that it will continue to benefit from FFH's support. GIG operates in markets that are important to FFH's growth prospects and increases FFH's diversification because of its core focus on the U.S. market. GIG accounted for about 9% of FFH's insurance revenue in 2024 on a pro forma basis.
The ‘Stable’ outlook reflects S&P’s expectation that over the next two years, GIG will remain at least a strategically important subsidiary of FFH. It also reflects S&P’s expectation that GIG will retain its competitive standing in the Middle East and North Africa, sustain its current operating performance, and maintain capital adequacy at least in line with S&P’s 99.95% confidence level.