Kuwait: First Takaful Insurance receives Moody's rating on asset quality

Source: Middle East Insurance Review | Aug 2026

Moody’s Ratings has assigned a ‘Ba2’ Insurance Financial Strength Rating (IFSR) with a stable outlook to Kuwait-based First Takaful Insurance Company. The rating reflects the insurer’s diversified product offering, adequate asset quality, a modest capital buffer following a KWD6m ($19.4m) capital injection by shareholders, and financial flexibility supported by its recent equity raise and listing on Boursa Kuwait.

According to Moody’s, these strengths are moderated by First Takaful’s modest market position as Kuwait’s 18th-largest insurer by premiums and its weak underwriting track record. Competitive pricing and a high expense base have weighed on profitability, although underwriting performance improved in 2025, with the combined ratio declining to 99% from a five-year average of 105%.

The rating agency said the February 2026 capital injection has strengthened the insurer’s capital position and reduced regulatory solvency risks, although its risk framework still requires further enhancement. M

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