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A.M. Best changes outlook to stable and affirms ratings for GIG

Monday 08 June 2015 07:45 PM


Al Mal:
Arab Misr Insurance Group’s (GIG–Egypt) outlook has been revised by A.M. Best to stable from negative affirming the financial strength rating of B++ and the issuer credit rating of "bbb".  
The revised outlook reflects the strengthened risk-adjusted capitalization and the improved level of economic, political and financial system risk associated with Egypt.
The ratings reflect GIG–Egypt's strong risk-adjusted capitalization, good track record of profitability and its sound domestic franchise.
GIG–Egypt's rating takes advantage of the financial strength of its parent firm, Gulf Insurance Group, and its strategic importance to the group.
GIG–Egypt's risk-adjusted capitalization keeps strengthening as profit retention outpaces growth in capital requirements, the rating agency says.
GIG managed to convince the rating agency to hold the annual meetings with A.M. Best’s officials in Cairo, which was refused by the agency in the previous years.
Developments in Egypt's economic and political environments are likely to be the main drivers of any future rating movements, either negative or positive, according to A.M. Best’s report.