AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of GIG Insurance – Egypt S.A.E. (GIG Egypt) (Egypt). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect GIG Egypt’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The ratings also factor in rating lift from GIG Egypt’s parent company, Gulf Insurance Group K.S.C.P. (GIG), reflecting the strategic importance of GIG Egypt to GIG.
GIG Egypt’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level, supported by internal capital generation. Although the company’s investment portfolio is of good liquidity, asset risk is high as assets are concentrated in Egypt, thereby exposing the balance sheet to the country’s high economic and political risk and very high financial system risk. Domestic regulatory restrictions limit the investment opportunities available to GIG Egypt; however, the company’s capital position is sufficiently robust to absorb the higher risk charges associated with assets held locally. The company relies heavily on reinsurance; however, credit risk is mitigated by the use of a reinsurance panel of generally excellent credit quality.
GIG Egypt has a record of generating strong earnings despite the challenging operating conditions and high inflationary environment of Egypt. GIG Egypt generated a return on equity of 36.1% in 2025, which was above the average inflation rate of 14.1% for the year. Underwriting performance remained strong in 2025 with a net/net combined ratio (as calculated by AM Best) of 87.8%. Robust underwriting profitability continued in 2026 and is expected to continue prospectively.
GIG Egypt holds a good competitive position in its domestic market as one of the largest non-life insurers. Nevertheless, the company’s profile is limited to its domestic market and is concentrated heavily toward the motor business line on a net insurance revenue basis. GIG Egypt is integrated operationally within the broader GIG group, which provides support in areas such as reinsurance purchasing, risk management, pricing, reserving and investment management. In addition, the company benefits from an affiliate guarantee agreement, which is a strong example of explicit support that GIG Egypt receives from its parent.
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 Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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