Kuwait: First Takaful's financial performance boosted by investment results
Source: Middle East Insurance Review | Nov 2026
First Takaful Insurance Company (FTIC) has been assessed as having weak but improving profitability. Credit rating organisation AM Best described its operating performance as marginal. Its weighted average combined ratio stood at 130% over 2023-2025, indicating that claims and expenses exceeded premiums earned. However, its investment yield improved to 5.9% in 2025, up from 4% in 2024. AM Best said it expects investment income to remain a key driver of earnings, although the company’s exposure to equities could lead to fluctuations in results.
AM Best has assigned FTIC a Financial Strength Rating of ‘B’ (Fair) and a Long-Term Issuer Credit Rating of ‘bb’ (Fair), both with stable outlooks. The ratings reflect strong balance sheet strength, marginal operating performance, a limited business profile and marginal enterprise risk management.
FTIC’s capitalisation is supported by a KWD6m ($19.5m) capital injection in 2026. However, significant private equity and affiliate investments, its small capital base and concentration in Kuwait’s takaful market remain challenges. Medical insurance accounts for almost half of its net portfolio. M