S&P: Coronavirus Pandemic would negatively Impact the Gulf Insurers’ earnings

S&P Global Ratings (S&P) stated that the spill over effects from the Coronavirus outbreak and plummeting oil prices are likely to affect earnings of Gulf insurers, hinting of a possible ratings downgrade for certain companies.

A report issued by the ratings agency mentioned that most insurers in the GCC region rated by S&P enjoy strong capital buffers, and therefore possess the ability to absorb Coronavirus related claims and capital market volatility.

However, the agency anticipate worsening conditions in equity and bond markets, coupled with the ongoing decline in real estate prices, to cause a significant dent on earnings and capital buffers of Gulf insurers with mat...