Kuwait Re posted softer first-quarter results on weaker investment returns, even as the reinsurance carrier's underwriting book swung sharply higher, according to interim financials for the three months ended March 31, 2026.
Net profit fell to 4.43 million Kuwaiti dinars (about $14.4 million), down roughly 16% from 5.28 million dinars a year earlier. Total comprehensive income came in at 4.03 million dinars, against 5.23 million dinars in Q1 2025.
Basic and diluted earnings per share eased to 13.04 fils from a restated 15.55 fils, with the year-earlier figure adjusted for a bonus share issue. The unadjusted prior-period EPS was 17.10 fils.
Underwriting results strengthened notably. Insurance revenue rose 6.8% to 22.13 million dinars from 20.71 million dinars, while insurance service expense dropped to 16.71 million dinars from 22.38 million dinars.
That moved the insurance service result before reinsurance contracts held to a positive 5.41 million dinars, against a 1.68 million dinar loss a year earlier.
Net expense from reinsurance contracts held came in at 2.21 million dinars, reversing prior-year net income of 4.47 million dinars on minimal recoveries against higher ceded premiums. The insurance service result still nudged up to 3.20 million dinars from 2.80 million dinars.
The decline in profit stemmed largely from softer investment performance. Net investment income slipped to 2.08 million dinars from 3.02 million dinars, dragged by an unrealized fair-value loss of 244,801 dinars on assets carried at fair value through profit or loss, against an unrealized gain of 963,069 dinars a year earlier.
Interest income moved higher, with deposit interest at 1.96 million dinars and bond interest at 329,899 dinars.
By segment, non-life reinsurance generated revenue of 20.46 million dinars and segment results of 2.32 million dinars. Life reinsurance contributed 1.66 million dinars in revenue and 247,649 dinars in results, swinging from a 69,450 dinar loss a year earlier.
Total assets stood at 276.71 million dinars at quarter-end, up from 272.14 million dinars at the close of 2025 and 244.88 million dinars a year earlier. Term deposits rose to 188.57 million dinars, while total equity reached 109.71 million dinars.
The annual general assembly on March 18 approved a 10-for-100 bonus share issue, lifting paid-up capital to 34.21 million dinars across 342.08 million shares, alongside a 10 fils per share cash dividend for 2025. On May 6, the board signed off on an interim cash dividend of 5 fils per share, subject to regulatory approval.
Kuwait Re also disclosed the opening of a GIFT City branch in Gandhinagar, India, established on January 8 with operations starting April 1, 2026, leaving no Q1 impact. The onshore move ends more than four decades of cross-border participation in the Indian market, with the reinsurer saying the branch builds on long-standing relationships with Indian cedants.
It is also designed to bring it closer to clients while reinforcing its capacity to support partner growth through consistent underwriting and capital solutions.
Management said standard war exclusion clauses shield Kuwait Re from Middle East geopolitical exposures, with liquidity and going-concern assessments intact. EY's Al Aiban, Al Osaimi & Partners issued an unmodified review conclusion on May 6.
