Kuwait Reinsurance Company (Kuwait Re) has disclosed that it has not experienced any material disruption to its business due to the Iran war, as it released its 2026 first-quarter financial results.
In the statements, Kuwait Re said that all its issued policies contain with standard war exclusion clauses, and therefore the company is not exposed to any liability arising from the war directly or indirectly.
Kuwait Re said, “Accordingly, management has not identified any material adverse impacts on the core business or valuation of the property or investment portfolio’s that require specific adjustment beyond those reflected in observable market prices and valuation inputs.
“In assessing the carrying values of investment properties and other non-financial assets, management has not identified any indicators of impairment requiring recognition at the reporting date. However, future adverse developments in the geopolitical environment may result in changes to key valuation assumptions.”
Buffers
The company maintains liquidity buffers and capital resources that management considers sufficient to meet its commitments and operating expenses as they fall due. The company has assessed the potential impact of adverse market movements on its ability to realise investments or access funding, including under stressed market scenarios. No breaches of liquidity thresholds, investment restrictions, or capital management policies were identified as at the reporting date. Management has also considered the impact of these events on the company’s ability to continue as a going concern and concluded that the going concern basis remains appropriate.
Kuwait Re added, “The geopolitical situation remains dynamic, and the extent and duration of potential impacts on global financial markets are uncertain. Management continues to monitor developments closely and will reflect any material impacts in future valuations, risk disclosures, and financial reporting as appropriate.”
Kuwait Re has reported an insurance revenue of KWD22.13m ($71.9m) for the first quarter of 2026, 6.8% higher than in the corresponding quarter in 2025, according to financial statements released by the company.
The combined ratio in the first quarter of 2026 improved to 85.30% compared with 86.56% in the corresponding quarter of the previous year. Insurance service results improved by 15% to KWD3.2m in 1Q2026 from KWD2.80m in the corresponding quarter of 2025.
Net investment income dropped by 31% year on year to KWD2.08m while net profit fell by 16% to KWD4.43m in 1Q2026.
| Financial results for 1Q (KWD) |
2026 |
2025 |
Change |
|
Insurance revenue
|
22,126,281
|
20,708,033
|
6.8%
|
|
Insurance service expense
|
-16,714,653
|
-22,383,989
|
-25.3%
|
|
Insurance service result
|
3,199,715
|
2,797,503
|
14.4%
|
| |
|
|
|
|
Finance expense from insurance contracts issued
|
-771,401
|
-501,743
|
53.7%
|
|
Finance income from reinsurance contracts held
|
138,889
|
217,689
|
-36.2%
|
|
Net Finance Expense
|
-632,512
|
-284,054
|
122.7%
|
|
Net insurance financial result
|
2,567,203
|
2,513,449
|
2.1%
|
| |
|
|
|
|
Net investment income
|
2,079,979
|
3,015,329
|
-31.0%
|
|
Non-attributable general and administrative expenses
|
-253,017
|
-242,288
|
4.4%
|
| |
|
|
|
|
Profit before tax, contribution and zakat
|
4,635,729
|
5,525,652
|
-16.1%
|
|
Net profit
|
4,425,595
|
5,275,571
|
-16.1%
|
Kuwait Re established a branch office in GIFT City in India under the International Financial Services Authority Act on 8 January 2026. The branch began operations on 1 April 2026.