Kuwait Re, which has a base in Malaysia, has chalked up a 41% jump in underwriting results for the first nine months of this year to KWD2.66m ($8.80m), compared to KWD1.88m for the corresponding period in 2017. With the good performance, the combined ratio improved to 96% compared to 98% for the same period last year, says the reinsurer in a statement.
Profit after tax for the first three quarters of this year stood at KWD2.97m ($9.83m), an increase of 7% compared to the corresponding period last year, mainly contributed by the increase in net earned premium.
The gross written premium for the period soared by 40% year-on-year 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 both last year’s level, with gains of KWD2.35m for the first nine months of this year with an annualised yield of 3.70%, compared to KWD2.08m for the corresponding period last year.
Shareholders’ equity showed steady growth to KWD48.62m as at 30 September 2018, against KWD45.95m a year ago.
Mr Dawoud Al-Duwaisan, CEO of Kuwait Re, commented, “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.
The composite reinsurer, established in 1972, offers Treaty Reinsurance, Facultative Risk Transfer solutions for Property, Engineering, Casualty, Marine, Downstream Energy, Upstream Energy, and Renewable Energy, as well as Life Reinsurance. The reinsurer has offices in both Kuwait and Malaysia.
A founding shareholder Al Ahleia Insurance increased its stake in Kuwait Re from 30.0% to 91.7% in 2015.