Mubasher: AM Best has affirmed Gulf Insurance Group’s Financial Strength Rating (FSR) at ‘A’ (Excellent), while its outlook has been revised to ‘Negative’ from ‘Stable’, according to a disclosure to Boursa Kuwait on Thursday.

The rating agency also affirmed the long-term Issuer Credit Ratings of Gulf Insurance at ‘a’, AM Best said in a recent release.

AM Best’s credit ratings reflect the group’s strong balance sheet, in addition to its strong operating performance, neutral business profile, as well as its comprehensive and appropriate enterprise risk management, the agency noted.

Furthermore, AM Best remarked that Gulf Insurance’s liquidity position required continuous support from short-term debt funding, while the group has resorted to other financing solutions instead during fiscal year 2019.

Gulf Insurance’s financial position is well-invested through the comprehensive and subsidised reinsurance, according to the disclosure, while the negative outlook reflects the group’s potential position in the medium term which ranges from 12 to 36 months.