Moody’s upgrades Gulf Insurance Group’s Insurance Financial Strength Rating from ‘A3’ to ‘A2’ and revised the Outlook to Stable.
Moody’s Investors Service has upgraded the Group’s Insurance Financial Strength Rating (IFSR) to ‘A2’ from A3 and changed the outlook to Stable from Positive. The rating upgrades reflect GIG’s leading position in its target markets with improved business profile, earnings and assets diversification as well as its well-established brand recognition. Moody’s also considers for this rating action, the solid financial performance for the year 2022, which was the first full fiscal year following GIG-Gulf acquisition, driven by strengthened position.
GIG's ratings upgrade reflects on the following strengths:
the relatively smooth integration of the acquired GIG-Gulf (previously AXA Gulf) operations, which has enhanced the group’s franchise,
the improvements in GIG’s geographic diversification and asset quality following GIG-Gulf acquisition,
the Group’s solid operating profitability with improving combined ratio,
a strong capital base and moderate financial leverage,
its disciplined underwriting and good reserve strength.
