Mubasher: Moody's Investors Service has assigned an ‘A3’ insurance financial strength rating (IFSR) to Gulf Insurance Group, a Kuwait-based group with operations across the Middle East and North Africa (MENA) region.
Moody's also assigned an ‘A3’ IFSR to Gulf Insurance and Reinsurance Company, the Group’s main insurance operating business in Kuwait, with a ‘stable’ outlook for both companies, according to a recent statement issued on Tuesday.
The ratings reflect the Group's strong and leading position in its target markets, with a relative market share ratio measuring the group's premiums relative to the average industry premiums.
Moody’s added that the ratings reflect the well-established brand recognition across the region; strong and consistent profitability, with a return on capital (ROC) of 11% between 2011-2015 driven by a very robust 5 year combined ratio (COR) of 93.5%.
The ratings also reflect “good capitalisation, with total equity of KWD 111 million ($366 million), representing 22% of total assets at YE 2015; strong management, which has implemented prudent and sophisticated risk management which is critical for the group's continuous expansion in the region.”
