AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of "a" (Excellent) of Kuwait Reinsurance Company K.S.C.P. The outlook on both ratings remains stable.
The affirmation covers Kuwait Re's balance sheet strength, assessed as very strong, alongside strong operating performance, a neutral business profile and appropriate enterprise risk management.
Kuwait Re's return on equity has remained in double digits across each of the past five years, from 2020 to 2025. It peaked at 19.9% in 2025. AM Best said underwriting profitability has been the primary driver, with reserving margins providing a buffer against earnings swings.
Risk-adjusted capitalisation was assessed at the strongest level under the Best's Capital Adequacy Ratio (BCAR) framework. AM Best cited internal capital generation and prudent reserving practices as supports for the balance sheet. Good liquidity was also noted.
One risk factor partially offsets the balance sheet assessment. Kuwait Re's real estate and equity portfolio stood at approximately 11% of total investments at year-end 2025. AM Best said that concentration exposes the capital base to potential volatility.
Kuwait Re's Q1 2026 results illustrated the investment risk. Net profit fell roughly 16% to KWD4.43 million as weaker investment returns offset stronger underwriting income. Insurance revenue over the same quarter rose 6.8% to KWD22.13 million.
AM Best's neutral business profile assessment reflects Kuwait Re's operations across the Middle East, North Africa, Asia-Pacific, and Central and Eastern Europe. The group provides proportional and non-proportional cover across those regions.
Kuwait Re reported insurance revenue of KWD90 million (US$294 million) in 2025, up 13% from 2024. AM Best attributed part of that growth to favourable reinsurance market conditions in the company's core markets.
Kuwait Re opened a branch at Gujarat International Finance Tec-City (GIFT City) in India in April 2026. The move ended more than four decades of cross-border participation in that market and extended the company's onshore Asia-Pacific footprint.
AM Best said it expects Kuwait Re's underwriting discipline and risk selection to continue supporting its prospective operating metrics. Kuwait's insurance regulator has also mandated that all re/insurers operating in the country hold a credit rating from an accredited international agency, a requirement that took effect under IRU Resolution No. 1/2026.
