S&P
withdraws AA- rating to Gulf Insurance
Our Banking
Bureau
15 July 2002
Dubai:
Following
the restructuring activities at Gulf Insurance group, a
wholly owned subsidiary of Travelers Property Casualty Corp,
a Citigroup arm, Standard & Poors (S&P) has withdrawn
its AA- counter-party credit and financial strength ratings
on Gulf Insurance Co UK (Gulf UK).
 The
ratings had been placed on CreditWatch with negative implications
on 12 March 2002 based on the companys earlier exclusion
from the Travelers Property Casualty Pool.
Gulf UK is a London-based property and casualty company.
As of 31 March 2002 the entity had reported a year-to-date
net income of $1.5 million and had a capital and surplus
account totalling $24.8 million.
In May 2002 the
group announced $125-million investment by Trident II
LP, a private equity fund managed by MMC Capital specialising
in making investments in insurance, reinsurance and financial
services sectors.
Gulf
UK could quickly evolve into a new organisation, and any
prospective rating would have to be based on a review
of a detailed business plan and new support agreements,
says S&P credit analyst Michael Gross.
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