AM Best Affirms Credit Ratings of Gulf Insurance Group – Jordan

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Gulf Insurance Group – Jordan (GIG Jordan) (Jordan). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GIG Jordan’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in lift from GIG Jordan’s parent company, Gulf Insurance Group K.S.C.P. (GIG), reflecting the strategic importance of GIG Jordan to the group.

GIG Jordan’s balance sheet strength is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). GIG Jordan’s BCAR scores are expected to remain comfortably at the strongest level, supported by good organic capital generation and measured growth. As a subsidiary of GIG, GIG Jordan benefits from good financial flexibility and a comprehensive group-wide reinsurance programme of generally excellent credit quality. The company continued rebalancing its investment portfolio by moving away from domestic cash and deposits, in favour of fixed income securities diversified across the Middle East region.

GIG Jordan has a record of underwriting profitability and in 2024 achieved a combined ratio (net/gross) of 91.9% in 2024 (2023: 89.9%). GIG Jordan has experienced relatively stable investment returns; the company’s net investment yield (including capital gains) was 6.6% in 2024 (2023: 4.2%).

GIG Jordan has a leading position in its domestic insurance market, with a market share of approximately 16%. However, the company’s underwriting portfolio is concentrated heavily toward medical and motor risks on a net insurance service revenue basis, which is a common characteristic of insurers in the region. Furthermore, Jordan’s insurance market is relatively small and fragmented. GIG Jordan is integrated operationally with its parent, benefitting from support in areas such as reinsurance purchasing, risk management, reserving and investment management.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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