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OCTOBER 15, 2021 12:34 PM (EDT)

AM Best Assigns Credit Ratings to AXA Insurance (Gulf) B.S.C.(c)


CONTACTS:
 William Keen-Tomlinson
Senior Financial Analyst
+44 20 7397 4395
will.keen-tomlinson@ambest.com

Tim Prince
Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
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james.peavy@ambest.com

FOR IMMEDIATE RELEASE

LONDON - OCTOBER 15, 2021 12:34 PM (EDT)
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to AXA Insurance (Gulf) B.S.C.(c) (AXA Gulf) (Bahrain). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect AXA Gulf’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). On 7 September 2021, AXA Gulf announced that it had expanded its 32% stake in AXA Cooperative Insurance Company (AXA KSA) to 50%. However, the company chose not to consolidate AXA KSA.

AXA Gulf’s balance sheet strength assessment reflects its risk-adjusted capitalisation, which was at the strongest level at year-end 2020, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s conservative asset allocation, low reliance on reinsurance and prudent reserving practices support its balance sheet strength. An offsetting factor is country risk. Although the majority of the company’s premiums and assets on a consolidated basis relate to countries that are considered by AM Best to have low to moderate economic, political and financial system risk, exposures in Oman and Bahrain carry high economic and financial system risk.

AXA Gulf’s strong operating performance assessment considers its history of strong overall profitability, with a five-year (2016-2020) weighted average return-on-equity ratio of 10.7% and a combined ratio of 96.4%. The company’s business is moderately diversified by geography and line of business, and it has defensible competitive positions in Saudi Arabia (through AXA KSA), the United Arab Emirates, Qatar, Oman and Bahrain.

AM Best considers the company’s risk management capabilities as sophisticated when compared with its regional peers. AM Best believes that, following the recent acquisition of the company by Gulf Insurance Group K.S.C.P. (GIG), AXA Gulf is well-positioned to execute its strategy within its new organisational structure. However, there is execution risk related to the integration of the company with the GIG group, and associated with the re-branding of its operations.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.


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