The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF) announces the Moody’s upgrades MEDGULF to Ba1 with positive outlook.
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| Announcement Detail | The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (Medgulf) is pleased to announce its upgrade in its Insurance Financial Strength Rating (IFSR) to Ba1 from B1 by Moody’s Investor Service. Where the outlook on the company has been changed to positive from rating under review. according to the credit opinion announced on 25/01/2022. The affirmation of MEDGULF’s Ba1 IFSR reflects its:
1) strong market position and brand, as the fourth largest player in the Saudi Arabian insurance market, with a 6.7% market share in terms of gross premium written in 2020, and an established brand particularly for medical insurance; 2) good asset quality, driven by a conservative investment strategy as evidenced by a low high risk assets (HRA) ratio as a percentage of consolidated (shareholders' and policyholders') equity of 44.9% at YE 2020 and that Moody’s expects it to improve to below 40% at YE 2021. 3) Low reserving risk, reflecting the predominance of short tail business in MEDGULF KSA’s business mix.
However these strengths are partially offset by the company's concentration to the most competitive lines of the Saudi Arabian market of motor and medical insurance. Please see the press release issued by Moody’s for the detail relating to the credit opinion. |
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