Chairman’s message

Chairman’s Message

Dear Shareholders,

To begin with, I would like to extend my sincere thanks to the Group shareholders for their confidence in the current Board of Directors, whose election cycle will be ended by the coming general assembly in 2023. On behalf of my colleagues, members of the Board of Directors and myself, I am pleased to present to you the Gulf Insurance Group annual report for the year of 2022.

Being one of the leading insurance groups in the Middle East and North Africa (MENA), we believe in & realize the importance of focusing on the fulfillment of the increasing needs for all our stakeholders. This increases our dedication to continue the journey of achievements that the Group started more than 60 years ago despite the global challenges resulting from the COVID-19 pandemic and the repercussions of the war in Ukraine, which caused a significant rise in services price, in addition to the successive global regulatory events represented in the rise in interest rates, etc. We were able, to overcome these challenges, which were characterized by uncertainty in many cases, thanks to the conservative vision and strategic planning that the Group follows in managing its business.

As we enter 2023, the global economy is expected to slow down as the rising interest rates to fight inflation and Russia’s war in Ukraine continue to weigh on economic activity. However, the Gulf Cooperation Council (GCC) is poised to continue outpacing many developed economies in terms of GDP growth, with the oil and gas sector expected to make a positive contribution again this year. The travel and tourism industry in the Middle East is also showing signs of recovery, with international visitor arrivals potentially reaching pre-covid levels by the end of 2023.

Recognized Brand

GIG HAS TURNED INTO A PROMINENT REGIONAL BRAND

The GIG has turned into a prominent regional brand that shines in the Middle East and North Africa (MENA) region, and it has become more prominent with the addition of AXA Gulf operations to the Group (whose insurance premiums are 304,221,081 Kuwaiti dinars), which was followed by the change of the brand from (AXA’s Gulf) to (GIG Gulf). Which is in line with the strategy of the Group towards brand unification.

Strong Credit Ratings

The uniqueness of the Group comes from being the first company in the State of Kuwait, which obtains three credit ratings, as it retained the highest credit ratings by the most prominent international rating agencies. Standard & Poor’s (S&P) announced that GIG’s Issuer Credit Rating and Financial Strength Rating at level “A”, with a stable future outlook.AM Best Rating Services affirmed GIG’s Financial Strength Rating and Issuer Credit Rating at “A” (Excellent) with a Stable Outlook. Moody’s Investors Service affirmed the Group’s Insurance Financial Strength Rating at “A3” with Positive Outlook. These global ratings confirm the Group’s leading position regionally.

Our Employees are our Priority

At GIG, we recognize the integral role that our dedicated and talented employees play in the group success understanding its true wealth and the driving force behind the Group’s achievements. Our employees are a source of inspiration for us, and we are committed to supporting them with a comprehensive range of programs aimed at promoting their professional development, rewarding top performers, and creating a positive and balanced work environment.

Corporate Governance & Sustainability

The Group dedicates the needed time and effort to support governance frameworks, and the Board of Directors and Executive Management believe that corporate governance encompasses more than just regulatory compliance, but serves as a robust vehicle for sound governance practices. It is worth mentioning that in 2022, GIG received no penalties from any regulatory or supervisory authorities.

Our Sustainability Vision

To further its commitment to ESG, GIG adopts a proactive approach where it has formed an ESG steering committee composed of members of the Board of Directors and Executive Management, as well as a dedicated management team to integrate ESG into its daily operations. In 2022, GIG enrolled with the United Nations Global Compact (UNGC) and has been actively communicating its ESG progress on the UNGC website. GIG continues to drive its sustainability efforts by monitoring its ESG Key Performance Indicators (KPIs), supporting initiatives, and leveraging new technology to ensure alignment with principles of global sustainability. GIG is committed to operating in line with the international sustainability principles and making a positive contribution to the society.

Digital Transformation

Our digital transformation journey is a crucial component of our long-term strategy. We have set our sights on incorporating cutting-edge digital insurance services, platforms, and automation technologies into our operations. Our goal is to transform GIG into a customer-focused, data-driven digital organization with a view to attaining sustainable competitive advantage and profitability. We are committed to investing in the digitalization of our operations and paving the way for further advancements to confront any challenges.

TO TRANSFORM GIG INTO A CUSTOMER FOCUSED, DATA-DRIVEN DIGITAL ORGANIZATION

Enhancement of Shareholders’ Value

The strong operational performance of this year is an evidence of the Group’s efforts in achieving its long-term vision, prioritizing the interests of our stakeholders, in addition to, providing a smooth and secure insurance experience and keenness to instill an organizational culture and support towards sustainability.

The Group achieved a net profit for shareholders for the year 2022 amounting to 38,181,491 million Kuwaiti dinars.

Given the above, the Board of Directors is pleased to recommend to your esteemed general assembly the following distributable profits for the financial year ending 31/12/2022 as follows:

Statutory Reserve 3,991,582 KD
Voluntary Reserve 3,991,582 KD
Capital to the Cash 15,322,557 KD

from the capital to the cash dividends to shareholders (i.e. 54 fils per shareagainst 35 fils per share for the previous year), taking into consideration the number of treasury shares, and the remaining amount of KD 100,286,382 will be allocated to the next year.

Gratitude, Recognition, and Appreciation

In conclusion, on behalf of my colleagues, the members of the Board of Directors, the Executive Management of the Group and all the subsidiaries and on behalf of myself, we would like to express sincere gratitude and appreciation to the visionary leaders of Kuwait His Highness the Amir of Kuwait; Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince; Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah for their invaluable support and sage guidance. Our thanks also go to The Prime Minister Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, the Ministry of Commerce & Industry and its officials, the Insurance Regulatory Unit, the Capital Markets Authority, and Kuwait Boursa for their insightful understanding and steadfast support to the local market.

On behalf of Gulf Insurance Group, we extend our deepest appreciation to our treasured customers, re-insurers, and international and local insurance brokers for their confidence and enduring support. We are deeply grateful to the Executive Management team for their unwavering commitment and hard work that contributed to the achievement of the targeted results. Our sincerest thanks go out to the dedicated staff of our Group, who have given their all to see us succeed.

We also extend our gratitude to Kuwait Projects Company (Holding), the largest shareholder, and Fairfax Holding Group, our second-largest shareholder, for their invaluable support and cooperation. As we look ahead to 2023, we remain hopeful that we will achieve our ambitious targets with their continued support.