GIG Insurance-Egypt (GIG Egypt) has a record of generating strong earnings despite the challenging operating conditions and high inflationary environment of Egypt, said AM Best.
GIG Egypt generated a return on equity of 36.1% in 2025, which was above the average inflation rate of 14.1% for the year. Underwriting performance remained strong in 2025 with a net/net combined ratio (as calculated by AM Best) of 87.8%. Robust underwriting profitability continued in 2026 and is expected to be sustained thereafter.
Ratings affirmed
AM Best has affirmed GIG Egypt’s Financial Strength Rating of ‘A’ (Excellent) and Long-Term Issuer Credit Rating of ‘a’ (Excellent). The outlook of these credit ratings is stable.
The ratings reflect GIG Egypt’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The ratings also factor in rating lift from GIG Egypt’s parent company, Kuwait-headquartered Gulf Insurance Group (GIG), reflecting the strategic importance of GIG Egypt to GIG.
GIG Egypt’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level, supported by internal capital generation.
Although the company’s investment portfolio is of good liquidity, asset risk is high as assets are concentrated in Egypt, thereby exposing the balance sheet to the country’s high economic and political risk and very high financial system risk. Domestic regulatory restrictions limit the investment opportunities available to GIG Egypt; however, the company’s capital position is sufficiently robust to absorb the higher risk charges associated with assets held locally.
The company relies heavily on reinsurance; however, credit risk is mitigated by the use of a reinsurance panel of generally excellent credit quality.
Business profile
GIG Egypt holds a good competitive position in its domestic market as one of the largest non-life insurers. Nevertheless, the company’s profile is limited to its domestic market and is concentrated heavily toward the motor business line on a net insurance revenue basis.
GIG Egypt is integrated operationally within the broader GIG group, which provides support in areas such as reinsurance purchasing, risk management, pricing, reserving and investment management. In addition, the company benefits from an affiliate guarantee agreement, which is a strong example of explicit support that GIG Egypt receives from its parent.