AM Best Affirms Credit Ratings of Kuwait Insurance Company S.A.K.P.

Business Wire

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Kuwait Insurance Company S.A.K.P. (KIC) (Kuwait). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect KIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

KIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment is supported further by KIC’s consistent internal capital generation and prudent reserving practices. A partially offsetting rating factor is the elevated counterparty credit risk stemming from KIC’s low underwriting retention, although this is mitigated partially by the use of a reinsurance panel of sound credit quality. Additionally, the company has concentrated exposures to higher-risk equity holdings, which has the potential to introduce volatility to its capital position.

KIC has a track record of strong operating performance, demonstrated by a three-year (2023-2025) weighted average return-on-equity ratio (ROE) (including other comprehensive income, [OCI]) of 12%. Earnings have been consistently supported by robust underwriting results from non-life and life portfolios over the last five years. KIC generated a three-year (2023-2025) weighted average net/net combined ratio of 87.2% (as calculated by AM Best). Overall results continue to be supported by strong, albeit volatile investment performance, with an adjusted ROE (including OCI) ranging from 7.5% to 14.3% over 2023-2025.

Although its business profile is assessed as limited, KIC holds a well-established position within its domestic insurance market of Kuwait, from which it sources all its premiums. The company generated insurance service revenue of KWD 61 million (USD 199 million) in 2025, down from KWD 70 million (USD 226 million) in 2024. Although KIC’s profile is concentrated geographically in Kuwait, it benefits from good product diversification, offering a comprehensive range of non-life and life products directly and LONDON insurance products through its subsidiary, Kuwait Islamic Takaful Insurance Company K.S.C. (closed). AM Best expects KIC to continue to grow profitably over the coming years despite the high levels of competition in Kuwait.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.