Kuwait-headquartered Gulf Insurance Group (GIG) has a record of strong operating performance, says AM Best, noting that in 2025, the company reported post-tax profits of KWD31.5m ($102.6m).
The after-tax profits spell a return on equity of 9.4%, as calculated by AM Best.
GIG’s earnings for the year 2025 were supported by positive underwriting and investment results, with a net investment return of 6.6%, as calculated by AM Best. GIG reported healthy results for the first six months of 2026, with a post-tax profit of KWD28.5m.
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 (GIG-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. The ratings also factor in the lift from GIG’s ultimate parent company, Fairfax Financial Holding, due to the strategic importance of GIG to Fairfax.
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 relatively conservative investment portfolio and comprehensive reinsurance programme, which appropriately covers its key exposures and is placed with reinsurers of excellent credit quality. The group’s consolidated adjusted financial leverage as at year-end 2025, was 18.6%, as measured by AM Best. Interest coverage is considered to be adequate.
Business profile
GIG is a composite insurance group that operates across the Middle East and North Africa (MENA) region through several subsidiaries, the majority of which have well-established positions in their respective markets. The group has profitably grown its footprint across the MENA region in recent years through organic and inorganic growth, reporting insurance service revenue of KWD729m in 2025.
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.
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.