Kuwait: Composite reinsurer posted 41% underwriting gains for 9M18
Source: Middle East Insurance Review | Jan 2019
Kuwait Re has chalked up a 41% jump in underwriting results for the first nine months of 2018 to KWD2.66m ($8.8m), compared to KWD1.88m for the corresponding period a year ago. With the good performance, the combined ratio improved to 96% compared to 98% for the same period in 2017.
Profit after tax for the first three quarters of 2018 stood at KWD2.97m ($9.83m), up 7% compared to the same period in 2017, mainly contributed by the increase in net earned premium.
GWP for the period soared by 40% y-o-y to KWD41.60m from January to September. Net earned premiums totalled KWD27.84m for the nine months, 34% higher than in the same period in 2017.
The company’s investment portfolio improved from 2017’s level, with gains of KWD2.35m for the first nine months last year with an annualised yield of 3.70%, compared to KWD2.08m for the corresponding period a year ago.
Shareholders’ equity showed steady growth to KWD48.62m as at 30 September 2018, against KWD45.95m a year ago.
Kuwait Re CEO Dawoud Al Duwaisan said, “The reinsurance market is facing many challenges, yet approached with the right attitude, those challenges can be mitigated. We have maintained our disciplined approach to underwriting, prudent risk management, and are aiming to build and maintain long-term relationships with our partners by being approachable, professional, and agile. It is only with the support of our sincere partners, that we were able to achieve such consistent results.”
Kuwait Re enjoys an A.M. Best credit rating of A-, with a stable outlook; it is listed on the Kuwait Stock Exchange and is regulated by Kuwait’s Capital Market Authority and by the Ministry of Commerce. M
KWD1 = $3.30