The outlook is stable.
"The ratings reflect Gulf Insurance's strong operating performance, strong competitive position, and good capitalization," said Standard & Poor's credit analyst Nigel Bond. "These positive factors are offset by Gulf Insurance's high-risk investments."
The stable outlook reflects Standard & Poor's expectation that there will not be any significant change in the main rating factors over the rating horizon. Standard & Poor's estimates that the net combined ratio will rise slightly in 2006 as the loss ratio deteriorates, due to continued change in the mix of business and increased competition. Standard & Poor's expects Gulf Insurance's capital adequacy to remain strong, and its reinsurance utilization to be little changed from the 2005 level. It is also expected that the investment portfolio will remain heavily exposed to equities.
The ratings are capped at two notches above those on KIPCO and are, therefore, significantly influenced by the ratings on KIPCO. Subject to this, the ratings on Gulf Insurance may be raised if it significantly reduces the market risk of its investment portfolio. The ratings may be lowered, however, if underwriting performance or capital adequacy falls below expectations.
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Kuwaiti composite insurer Gulf Insurance Co. K.S.C. rated 'BBB+'; outlook stable
- United Arab Emirates: Tuesday, September 12 - 2006 at 14:56
- PRESS RELEASE
Standard & Poor's Ratings Services said today it assigned its 'BBB+' long-term counterparty credit and insurer financial strength ratings to Kuwait-based composite insurer Gulf Insurance Co. K.S.C.
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Ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.Analyst Contacts:
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Posted by Lara Lynn Golden, News EditorTuesday, September 12 - 2006 at 14:56 UAE local time (GMT+4)
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This article was updated on Sun Sep 17 2006.
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