Kuwait Re's 1Q net profit up 61% to $5.4m
Source: Middle East Insurance Review | Jun 2019
Kuwait Re has reported a net profit of KWD1.6m ($5.4m) for the first quarter of 2019, an increase of 60.8% compared to the same period in 2018, contributed mainly by the increase in net earned premiums and the investment income. Basic and diluted earnings per share (EPS) were 9.25 fils, compared to 5.75 fils in the same quarter last year.
In the first quarter, its GWP grew to KWD23.1m from KWD27.2m in the same period last year, while net earned premiums increased by 34.8% to KWD11.9m. Combined ratio improved to 94% compared to 97% in the first three months of 2018.
Its underwriting results soared 75% to KWD1.2m in the first quarter this year.
The reinsurer’s investments also fared better from last year’s level, adding to the bottom line KWD1.04m with a yield of 4.77% compared to KWD0.8m with a 3.74% yield in the first quarter of 2018.
The reinsurer said it has maintained its prudent underwriting practices, which led to improvement in all financial indicators. These strategies to improve the business mix and enhance the underwriting performance were recently recognised by A.M. Best, when the rating agency affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of ‘a-’, with a stable outlook.
Shareholders’ equity has grown to KWD50.6m, an increase of 4% from the corresponding quarter last year. The company’s invested assets grew slightly to KWD87.6m, from KWD87.0m at the end of 2018. Total assets reached KWD148.6m, up 14.7% from KWD129.5m at the end of 2018. M
KWD1 = $3.29