GIG’s financial strength rating was affirmed by AM Best at ‘A Excellent’ with a negative outlook. The rating agency recognized GIG’s healthy regional business profile, good risk-adjusted capitalization, continued strong profitability, the Group’s ability to generate diverse income streams and meet its ongoing payment obligations. To further improve its rating, AM Best believed GIG must address the execution risk associated with the Group’s inorganic expansion strategy, appetite for acquiring large accounts and decline in its capital adequacy.
AM Best acknowledged GIG’s efforts in correcting and improving its liquidity position, strengthening its capital adequacy ratio and addressing its rising exposure in high risk countries. AM Best also attested to the company’s solid track record, underpinned by robust underwriting profitability, and its stable investment returns. In 2019, GIG grew its gross written premium by 8%, to KD 394.59 million (US$ 1,203 million).
Additionally, AM Best assessed the Group’s liquidity as strong and continues to view GIG’s management and governance as satisfactory and its Group’s Enterprise Risk Management as adequate.
GIG Group Senior Manager – Corporate Communications & Investor Relations, Mr Khalid Al Sanousi said, “We are pleased with the outstanding results of the Group’s financial strength rating from AM Best. This result is driven by the Group’s well-established and comprehensive Enterprise Risk Management framework with appropriate tools and techniques help to identify, measure and manage risks on a group level. We are the first insurance company in Kuwait to be triple-rated from international credit rating agencies, AM Best, S&P and Moody’s, enabling the group to provide world-class offerings with the presence of a strong and unified gig brand across the markets we operate in.”