Kuwait Insurance Company (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%, notes AM Best.
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.
‘Excellent’ ratings affirmed
AM Best has affirmed KIC’s Financial Strength Rating of ‘A-’ (Excellent) and Long-Term Issuer Credit Rating of ‘a-’ (Excellent). The outlook of these credit 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.
Balance sheet strength
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.
Business profile
Although its business profile is assessed as limited, KIC holds a well-established position within its domestic insurance market of , from which it sources all its premiums. The company generated insurance service revenue of KWD61m ($199m) in 2025, down from KWD70m 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 insurance products through its subsidiary, Kuwait Islamic Takaful Insurance Company. AM Best expects KIC to continue to grow profitably over the coming years despite the high levels of competition in Kuwait.