International rating agency A.M. Best has withdrawn the ratings of Gulf Reinsurance Limited (Gulf Re). The Dubai-based company is in run-off and ceased writing new business from November 1st, 2016.
Gulf Re, a subsidiary of Arch Reinsurance Ltd (Arch Re) operated as a specialist reinsurance company, underwriting a portfolio mainly made up of short-tail risks from the Gulf Cooperation Council countries, and which had gross written premiums of $42 million in 2015.
A.M. Best affirmed the financial strength rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Gulf Re, concurrently withdrawing its ratings as the reinsurer requested to no longer participate in the rating agency’s interactive rating process.
“The ratings of Gulf Re reflect A.M. Best’s opinion that Arch remains committed to supporting the company’s policyholders’ obligations,” says A.M. Best.
The reinsurer benefits from a 90% whole account quota share agreement with Arch Re, and based on unaudited interim results as at September 2016, “Gulf Re’s risk-adjusted capitalisation remains at a strong level,” says A.M. Best.
“Residual underwriting risk remains, owing to Gulf Re’s net exposure to risks incepting after 2014. A.M. Best understands that there are currently no plans to dividend capital out of Gulf Re,” concludes the rating agency.
