Kuwait - Mubasher: Moody's Investors Service assigned Arab Misr Insurance Group (AMIG) a B1 insurance financial strength rating (IFSR), with stable outlook.
AMIG is the main Egyptian subsidiary of the Kuwait - based Gulf Insurance Group.
The B1 IFSR of Arab Misr Insurance Group (AMIG) reflects the good stand-alone financial fundamentals of its operations as well as the support stemming from its parent company, Gulf Insurance Group, according to moody's report.
Moody's views Egypt as a key growth market for GIG in terms of premiums and underwriting results, with Egypt representing already 10% and 15% of GIG's premiums and underwriting results respectively in 2015.
Furthermore reinsurance protection purchased by the group includescoverage for AMIG and GIG provides technical expertise to its Egyptian subsidiaries reflecting the group's continued commitment to the region.
Meanwhile, AMIG's stand-alone credit profile reflects its top five position in the Egyptian insurance market (top two when excluding state-owned insures) and a growing brand, good product diversification of non-life products and very good operating profitability.
AMIG also continues to show strong organic growth across all client segments with an overall growth rate of 17% in its financial year ended 30 June 2015. However, these strengths are somewhat offset by the meaningful direct exposure to Egypt's sovereign risk in terms of investment portfolio and the operating risks inherent in the increasingly competitive Egyptian insurance market.
