The insurance revenue of Gulf Insurance Group (GIG), a large regional insurance group, returned to growth in 2026, noted S&P Global Ratings (S&P).
In a commentary, S&P said, “We expect this to continue over the next two years. The company reported insurance revenue growth of 11% in 1H2026, to KWD399m from KWD360m in 1H2025.”
S&P expects GIG to grow by 5%-10% over 2026 and 2027, following a 14% decline in 2025.
The insurer recorded insurance revenue of KWD729m ($2.4bn in 2025, 14% lower than 2024's KWD847m. The decline was due to the discontinuation of the Afya health insurance scheme, from which GIG generated about KWD153m in premiums in its final year (2024). Excluding the Afya impact, the company's insurance revenue grew 5% in 2025.
The smaller top-line base results in lower liability charges in S&P’s assessment of liquidity. Together with GIG's profitable performance and an increase in liquid assets, S&P considers the group's liquidity exceptional.
Moreover, the material loss of Kuwaiti premiums increases GIG's exposure to higher-risk markets, notably Bahrain, Jordan, Egypt, and Turkiye. This could negatively affect S&P’s view of its business risk profile over the next 12 months.
Middle East conflict
S&P anticipates the Middle East conflict to largely translate into slower revenue growth, albeit with limited effect on profitability. GIG's property & casualty business generally has standard exclusions for war risk and political violence. Including these, such as with some property and marine (cargo and hull) coverage, GIG has very high reinsurance protection with highly rated counterparties, significantly limiting the group's net exposure to these risks.
Profitability
S&P said, “We think GIG will continue its profitable streak over the forecast horizon. The insurer consistently demonstrates stable underwriting profitability. In 2025, its net combined ratio stood at 92%, similar to 2024 levels. The global credit rating agency expects GIG to report net combined ratios of 91%-93% over 2026-2027, with net profits of KWD25m-KWD35m per year over 2026-2027. The group's profitable performance should help it sustain risk-based capital adequacy at the highest confidence level under S&P’s model. Specifically, S&P expects capital adequacy to continue exceeding 10% of the 99.99% benchmark over the next two years.
Ratings affirmed
On 19 August 2026, S&P affirmed its 'A+' long-term issuer credit and insurer financial strength ratings on GIG and Gulf Insurance and Reinsurance Co. The outlook is stable, reflecting the agency’s expectation that over the next two years, GIG will remain at least a strategically important subsidiary of Canada-based Fairfax Financial Holdings. It also reflects S&P’s expectation that GIG will retain its competitive standing in the Middle East and North Africa, sustain its operating performance, and maintain capital adequacy.