TEXT-S&P summary: Gulf Insurance Co. KSC - Reuters

May 17 -

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Summary analysis -- Gulf Insurance Co. K.S.C. --------------------- 17-May-2012

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CREDIT RATING: Country: Kuwait

Local currency A-/Stable/--

Primary SIC: Fire, marine, and

casualty

insurance

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Credit Rating History:

Local currency Foreign currency

04-May-2012 A-/-- --/--

12-Sep-2006 BBB+/-- --/--

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Rationale

The ratings on Kuwait-based non-life insurer Gulf Insurance Co. K.S.C. (Gulf Insurance), a core operating entity of Kuwait-domiciled non-life insurer Gulf Insurance Group (or the group), reflect Standard & Poor's Ratings Services view of the group's strong competitive position, strong operating performance, and strong capitalization. However, these strengths are partially offset by still-high exposure to investment risk and the group's adequate financial flexibility.

The group is one of the largest companies in the Gulf Cooperation Council (GCC) region and had a gross premium income of Kuwaiti dinar (KWD) 134 million in 2011 ($478 million). Of this, 52% of total premium comes from Kuwait, 19% from Jordan, 13% from Bahrain, and 10% from Egypt. By gross premium income, the group is the leading life insurer in Kuwait and the leading non-life insurer in Kuwait, Bahrain, and Jordan. This reflects its broad product offerings and good service and distribution.

17 May, 2012