AM Best Company, a ratings agency, has assigned a financial strength rating of A- (excellent) and issuer credit rating of A- to Gulf Reinsurance Ltd (Gulf Re) with a stable outlook.
Gulf Re is a specialist reinsurer licensed by the Dubai Financial Services Authority.
The rating agency said: "Gulf Re is likely to maintain strong risk-adjusted capitalisation during the company's initial years of operation, based on conservative performance forecasts and AM Best's specific insurance start-up criteria. Gulf Re's initial capital of $200 million has been provided 50 per cent each by Gulf Investment Corporation and Arch Capital Group. AM Best believes the company will fully capitalise all operating profits up to at least 2013, which will be sufficient to maintain strong risk adjusted capitalisation."
Gail Nortsrom, CEO of Gulf Re, said: "This rating provides independent confidence in the business plan, management, financial strength and long-term stability of the company."