AM Best Affirms Credit Rating of Kuwait Reinsurance Company K.S.C.P.

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    LONDON–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A-
    (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Kuwait
    Reinsurance Company K.S.C.P. (Kuwait Re) (Kuwait). The outlook of these
    Credit Ratings (ratings) remains stable.

    The ratings reflect Kuwait Re’s balance sheet strength, which AM Best
    categorises as very strong, as well as its adequate operating
    performance, neutral business profile and appropriate enterprise risk
    management.

    Kuwait Re’s balance sheet strength is underpinned by risk-adjusted
    capitalisation, which, as measured by Best’s Capital Adequacy Ratio
    (BCAR), is at the strongest level. The company’s balance sheet strength
    also benefits from prudent reserving practices. The company maintains
    good levels of liquidity, as evidenced by a ratio of liquid assets to
    net technical reserves of 109% at the end of 2018. Capital consumption
    is driven predominantly by underwriting risks, due to the company’s top
    line growth in 2018 and high premium retention.

    Following a change in management in 2016, the company altered its
    business strategy and increased its focus on bottom line profitability.
    This has translated into improved technical performance and reduced
    volatility in operating results, with the company reporting a healthy
    average combined ratio for the period 2016 to 2018 of 96.9%, and an
    average return on equity of 6.2%.

    Kuwait Re’s business profile is supported by its good geographical
    diversification, through operations spanning the Middle East and North
    Africa, Asia-Pacific and Central and Eastern Europe. The underwriting
    portfolio is well-diversified by class of business, and the company
    provides proportional, non-proportional and facultative solutions to its
    cedants. Since its change in strategy, Kuwait Re’s portfolio mix has
    shifted in favour of facultative and excess of loss business, with these
    two lines of business accounting for 53% of the KWD 46.6 million premium
    written in 2018 (2017: 58% of KWD 35.1 million). Whilst Kuwait Re is
    predominantly a non-life reinsurer, its life reinsurance operations
    continue to grow, with gross written premiums increasing from KWD 1.8
    million in 2017 to KWD 2.6 million in 2018.

    This press release relates to Credit Ratings that have been published
    on AM Best’s website. For all rating information relating to the release
    and pertinent disclosures, including details of the office responsible
    for issuing each of the individual ratings referenced in this release,
    please see AM Best’s
    Recent
    Rating Activity
    web page. For additional information
    regarding the use and limitations of Credit Rating opinions, please view
    Understanding
    Best’s Credit Ratings
    . For information on the proper media
    use of Best’s Credit Ratings and AM Best press releases, please view
    Guide
    for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
    Action Press Releases
    .

    AM Best is a global rating agency and information provider with a
    unique focus on the insurance industry. Visit
    www.ambest.com
    for more information
    .

    Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
    affiliates. ALL RIGHTS RESERVED.

    Contacts

    William Keen-Tomlinson, ACA
    Financial Analyst
    +44
    20 7397 4395

    [email protected]

    Salman Siddiqui
    Associate Director, Analytics
    +44
    20 7397 0331

    [email protected]

    Christopher Sharkey
    Manager, Public Relations
    +1
    908 439 2200, ext. 5159

    [email protected]

    Jim Peavy
    Director, Public Relations
    +1 908
    439 2200, ext. 5644

    [email protected]