Kuwait: Wethaq Takaful clinches Moody's rating upgrade as pressure on capital eases

Source: Middle East Insurance Review | Aug 2026

Moody’s Ratings (Moody’s) has upgraded Wethaq Takaful Insurance Company’s (Wethaq) Insurance Financial Strength Rating (IFSR) to ‘B1’ from ‘B2’, and changed the outlook to ‘Positive’ from ‘Negative’.

In March 2026, Kuwait’s insurance regulator, the Insurance Regulatory Unit (IRU) approved the cancellation of Wethaq’s life insurance licence and thereby reduced the minimum capital requirement from KWD10m ($32.2m) to KWD5m, allowing Wethaq to come into compliance with regulatory requirements. This alleviated the governance risks arising from Wethaq’s previous non-compliance, which had been a constraint on its rating.

The positive outlook also reflects Wethaq’s improving business profile and profitability, as evidenced by 49.5% growth in insurance revenue to KWD6.3m in 2025 and net income of KWD2.3m. Continued profitable growth would support organic capital generation and liquidity, and, if sustained, could strengthen the company’s asset quality, capital adequacy, profitability and overall credit profile. M

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