S&P pulls Gulf Insurance off developing watch

S&P Global Ratings said it affirmed the A- ratings on Gulf Insurance Group KSCP and its core subsidiary, Gulf Insurance and Reinsurance Co. and removed the ratings from CreditWatch, where they were placed with developing implications on Dec. 2. The outlook is developing.

“We believe GIG’s acquisition of AXA’s operations will improve GIG’s competitive position through economies of scale and geographic diversification into insurance markets with stronger attributes. We also think the credit quality of the combined investment portfolio will improve after the AXA Gulf acquisition,” the agency said in a press release.

However, S&P cautioned the deal bears risks, such as raising capital, integrating newly acquired subsidiaries, or divesting non-core businesses and potentially straining capital adequacy or pressuring the company’s funding.

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