LONDON, 11 July 2013—A.M. Best Europe – Rating Services Limited has commented that the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of Arab Misr Insurance Group S.A.E. (gig-Egypt) remain unchanged at this time following the continued political unrest in Egypt. The current ratings factor in rating enhancement from gig-Egypt’s parent company, Gulf Insurance Company K.S.C. (GIC) (Kuwait). Both ratings continue to have a negative outlook. The company is presently the sole A.M. Best-rated company in Egypt.
The elevated level of country risk surrounding Egypt has largely been responsible for the current negative rating outlook, with the market environment remaining uncertain and volatile given the on-going political issues. A.M. Best currently classifies Egypt in Country Risk Tier Five (CRT-5) given its “high” economic and financial risk and “very high” political risk. All of gig-Egypt’s business is generated locally, with its investment portfolio highly concentrated in Egyptian government debt. While gig-Egypt’s operations have shown resilience during this turbulent period, A.M. Best will continue to monitor developments and assess any impact on the company.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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