Gulf Insurance Group (GIG) has a record of strong operating performance and in 2024 reported post-tax profits of KWD31.8m ($103.5m), equating to a return on equity of 8.4%, as calculated by AM Best.
Earnings for 2024 were supported by positive underwriting and investment results, with a net investment return of 6.7%, as calculated by AM Best. GIG reported healthy results for the first six months of 2025, with a post-tax profit of KWD16.0m, added the global credit rating agency.
Ratings affirmed
AM Best has affirmed the Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Ratings of ‘a+’ (Excellent) of GIG and Gulf Insurance and Reinsurance Company (GIG-Kuwait), both domiciled in Kuwait. The outlook of these credit ratings is ‘Stable’.
The ratings reflect GIG’s consolidated 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’s ultimate parent company, Fairfax Financial Holding, due to the strategic importance of GIG to Fairfax.
GIG-Kuwait is a composite insurer with a leading position in Kuwait’s insurance market. The company is strategically important to GIG and integrated into its operations.
Balance sheet strength
GIG’s balance sheet strength assessment is underpinned by consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects will remain comfortably above the threshold for the strongest assessment level.
GIG’s balance sheet strength benefits from a comprehensive reinsurance programme and a relatively conservative investment strategy. The group’s balance sheet is exposed to a moderate level of financial leverage, which is projected to reduce over the medium term. At the same time GIG is expected to closely manage its liquidity position.
Business profile
GIG is amongst the largest and most diversified insurance groups in the Middle East and North African (MENA) region. GIG holds a leading market position in Kuwait, Bahrain and Jordan and is among the top players in Saudi Arabia, the UAE, Qatar, Oman, Egypt, Turkey and Algeria. The group has profitably grown its footprint across the MENA region in recent years through organic and inorganic growth, reporting insurance service revenue of KWD84m ($2.8bn) in 2024, and developing its capabilities to service the region through regional accounts.
GIG’s ratings benefit from the favourable financial flexibility and significant capital resources of Fairfax. In addition, GIG benefits from shared resources and expertise from within the wider group.