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FOR IMMEDIATE RELEASE
LONDON - APRIL 21, 2023 11:52 AM (EDT)
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Gulf Insurance Group K.S.C.P. (GIG), which has a stable outlook, remain unchanged following the recent announcement that Fairfax Financial Holdings Limited (Fairfax) is to acquire an additional 46.32% share of GIG from Kuwait Projects Company (Holdings) K.S.C.P. (KIPCO).
On 18 April 2023, it was disclosed that Fairfax had entered into a binding implementation agreement with KIPCO for an off-market trade of KIPCO’s direct and indirectly owned shares in GIG, representing 46.32% of the equity of GIG. On completion of the transaction, Fairfax’s equity interest in GIG will increase to 90.01% from 43.69%.
The transaction is not anticipated to result in a change in GIG’s business strategy or Credit Rating (rating) fundamentals. AM Best will continue to monitor the execution of the transaction and its impacts on GIG.
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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.