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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