Dubai: SiltaNews – News Desk
Most rated insurers in the Gulf Cooperation Council (GCC) are expected to remain broadly stable in the short-to-medium term, S&P Global Ratings said on Wednesday.
“This is thanks to robust earnings generation in recent years, which has contributed to a significant buildup of capital buffers,” the S&P said in a report. The report highlighted that GCC insurers have sufficiently robust capital buffers to absorb a potential increase in capital market volatility and any claims related to the war in the Middle East, as these are either heavily reinsured or subject to exclusion clauses.
“Regional trade disruptions and the risk of an increase in claims will mostly affect marine, aviation, energy, and cyber business lines,” S&P said. However, it noted that insurers operating in these segments “tend to have relatively low and manageable net exposures, if they have any at all.”