Standard & Poor’s: Rated ‘A-‘ with Stable outlook. July 05, 2017.

S&P Global Ratings agency have raised the rating on GIG to 'A-' from 'BBB+' with stable outlook. This reflects GIG’s capability of generating diverse income streams from its operating subsidiaries and associates as well as its own activities to meet its ongoing payment obligations under essentially all foreseeable circumstances. Also, the stable outlook reflects t the agency’s view that the group's regional expansion plans will be managed efficiently, thereby controlling industry and country risk ensuring continued profitability and moderately strong capital adequacy.


S&P announced that GIG is a holding company and a fully licensed operating insurer, through which it underwrites some insurance contracts in addition to writing Takaful business in Kuwait.


The agency also viewed GIG to have a strong business risk profile, generated and sustained by its leading insurer positions in Kuwait, Bahrain, and Jordan. The group has successfully underwritten Kuwait Retirees medical plan and also managed to stabilize its combined ratio at a five-year average of 98%, which is on average, as some regional peers but demonstrates a less volatile track record.


The group's financial risk profile has been assessed as upper adequate, sustained by its moderately strong capital and earnings and moderate risk profile. The group's forecasted capital adequacy is expected to remain moderately strong over the outlook period; it depends on successful earnings and controlled operational growth. The liquidity is assessed to be strong.


Finally, the agency views GIG's management and governance as satisfactory and its enterprise risk management (ERM) as adequate. ERM is assuming a much stronger role in the group's direction and this partly eases their concerns about its regional expansion program.