Moody's Rating - APR 2019

Moody's announces completion of a periodic review of ratings of Arab Misr Insurance Group (gig) S.A.E

15 Jul 2019

DIFC - Dubai, July 15, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Arab Misr Insurance Group (gig) S.A.E and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

The Ba2 rating for Arab Misr Insurance Group (GIG Egypt) reflects the good stand-alone financial fundamentals of its operations as well as the implicit support coming from the GIG Group, enabling the positioning of GIG Egypt's IFSR three notches above the Egyptian sovereign rating (B2, Stable) as well as above the stand-alone credit profile of the company. GIG Egypt's stand-alone credit profile reflects its top three position in the Egyptian P&C insurance market and a growing brand, good product diversification of non-life products and very good operating profitability.

However, GIG Egypt's stand-alone credit profile, and its published Ba2 IFSR, remain constrained by the meaningful direct exposure to Egypt's sovereign risk in terms of investment portfolio and the operating risks inherent in the increasingly competitive Egyptian insurance market. Moody's notes that GIG Egypt's other key credit fundamentals (i.e. asset quality, capitalisation and financial flexibility) are correlated with-- and thus linked to - the economic and market conditions in Egypt, where it is domiciled and has all its operations.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Property and Casualty Insurers published in May 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Created 2/4/2020 1:06:10 PM