Kuwait Re unveils new identity; records 21% profit growth for 1Q18
After almost five decades of overcoming challenges, the reinsurer has gained a competitive edge in the industry and is poised to soar to greater heights.
Kuwait Re has unveiled its new corporate identity, underlining its strategy and vision to be a reinsurer of choice. Its new logo reflects the company’s three main values of being dynamic, inclusive and solid.
“This new image does not change the essence of Kuwait Re. Rather, it organises our thoughts and efforts toward our vision of becoming a reinsurer of preference,” said its CEO Dawoud Al Duwaisan. “Throughout the years, our clients and business partners have contributed to our success, and during the past year, we have been enhancing our systems and processes while maintaining business consistency, striving always to keep our sight on our three main values.”
“Being dynamic is a challenge which we tackle every day by being strategically located, approachable, and quick to turnaround. We prefer open communication to hierarchical bureaucracies any day.”
The culture of inclusion expands further than Kuwait Re’s family. “We make it a priority to include our partners in our events and initiative, to exchange information, share knowledge and expand networks,” he said.
After five decades of overcoming challenges, it should come as no surprise that Kuwait Re is solid. Mr Al Duwaisan added, “We are also transparent with each other, with our clients, and with all of our business partners. This is because we know we operate in a highly connected global business world in which we go above and beyond to be fair to each other. It is a challenging time to have such a guiding principle, but we would not have it any other way.”
Performance report
Kuwait Re recorded a profit of KWD1.02m ($3.31m) for the period ended 31 March 2018, an increase of 21% as compared to KWD0.85m for the corresponding period last year. Increase in underwritten premiums and net investment income helped the company generate the desired result. GWP for the period grew by 63% to KWD23.11m from KWD14.19m.
In 2017, Kuwait Re demonstrated significant progress in realigning its portfolio mix toward facultative and excess of loss business, with these two lines of business accounting for 58% of the KWD35.1m GWP during the year.
Shifting to more profitable business
The implementation of strategic decisions to rationalise Kuwait Re’s operations, including a shift to more profitable business, is expected to translate into improved technical performance, which should reduce volatility in prospective operating results. The operating performance continued to be supported by stable investment returns.
Kuwait Re benefits from a track record of adequate operating performance. The company’s return on equity for 2017 stood at 6.9%, in excess of the five-year average (2013-2017) of 4.7%.
The company reported a 57% surge in net profit, chalking up KWD3.06m for 2017, compared to KWD1.95m for 2016, according to financial statements posted on the company’s website.
Business diversification
According to Mr Al Duwaisan, Kuwait Re is now an international composite reinsurer, offering facultative protection, proportional treaters and excess of loss reinsurance across the Middle East and North Africa, Asia Pacific, and Eastern Europe.
In addition, while the company has predominantly been a non-life reinsurer, increased diversification has arisen from the significant growth in the company’s life reinsurance operations in 2017.
Very strong financial position
More recently, A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Kuwait Re. The outlook of these credit ratings remains stable.
According to rating agency report, Kuwait Re’s risk-adjusted capitalisation is categorised as strongest. The company’s balance-sheet strength also benefits from prudent reserving practices and good levels of liquidity, as evidenced by a ratio of liquid assets to net technical reserves of 110% at the end of 2017.
KWD1 = $3.31
