Gulf Re placed under review by A.M. Best

A.M. Best has placed the current rating of Gulf Re (A-) under review, with negatives implications.

The rating agency notes the low level of performance of the reinsurer during the last five years (technical losses for four financial years out of five). Poor results caused by a higher than expected frequency of claims.

In addition, Gulf Re had to face two large claims in 2014, which might bring its combined ratio above 100%.

The rating will be further reviewed at the end of November 2014.