Kuwait Reinsurance Company has demonstrated a track record of strong operating performance, evidenced by a return-on-equity ratio that has been consistently in the double digits over the past five years (2020-2025), peaking in 2025 at 19.9%, notes AM Best.
The reinsurer’s earnings have been underpinned by robust underwriting profitability, which includes substantial reserving margins that provide a buffer against volatility, says the global credit rating agency.
AM Best expects Kuwait Re’s underwriting discipline and prudent risk selection to support its prospective operating metrics.
Ratings affirmed
AM Best has affirmed Kuwait Re’s Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a’ (Excellent). The outlook of these credit ratings is ‘Stable’.
The ratings reflect Kuwait Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Kuwait Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet strength is supported by a track record of internal capital generation, along with prudent reserving practices and good liquidity. A partially offsetting factor is Kuwait Re’s holdings of higher-risk assets, with its real estate and equity portfolio equating to approximately 11% of total investments at year-end 2025, which exposes its capital base to potential volatility.
Business profile
Kuwait Re’s neutral business profile assessment reflects its diversification by geography and product offering, says AM Best. The company’s operations span the Middle East, North Africa, Asia-Pacific and Central and Eastern Europe, where it provides proportional and non-proportional cover to its cedants. Kuwait Re reported insurance revenue of KWD 90m ($291m) in 2025, representing a growth of 13% compared with 2024, driven in part by favourable reinsurance market conditions in its core markets.