Kuwait’s Insurance Regulatory Unit has set explicit minimum credit-rating thresholds for market participants, requiring at least B++ from AM Best, Baa1 from Moody’s, or BBB+ from S&P or Fitch.
The requirement is contained in IRU Resolution No. 1/2026, published on January 15, 2026, which directs insurers and reinsurers operating in Kuwait to obtain a credit rating from an accredited international rating agency meeting the prescribed minimum standards. The mandate applies to insurance and reinsurance companies, including branches of foreign insurers.
Under the resolution, companies are required to submit a copy of their credit rating each year, along with an analytical report, to the competent authorities. The rating and accompanying report must be translated into Arabic and filed with the IRU no later than June 30 of each year. The IRU’s resolution states that the classification should cover the fiscal year ended December 31 of the previous year.
The IRU said the credit rating serves as an indicator of a company’s financial strength. The resolution requires re/insurers to maintain a rating demonstrating an acceptable capacity to meet financial, credit, administrative and supervisory requirements, including creditworthiness and the ability to fulfil contractual obligations.
Branches of foreign insurance companies operating in Kuwait are also required to submit documentation confirming that their parent companies hold a credit rating issued by an approved international agency, according to the resolution.
The resolution sets additional reporting and disclosure requirements. It obliges companies and foreign branches to incorporate credit rating considerations into annual plans related to governance, risk management and financial sustainability. The IRU requires these plans to include procedures addressing how companies will improve and maintain the required credit rating. A copy of the plan must be submitted to the IRU with the company’s or foreign branch’s annual report for monitoring and evaluation. The IRU may request updates or amendments to the plan.
The IRU also requires companies and foreign branches to publish their credit rating on official websites, in relevant publications and on issued insurance policies. The disclosure must include the name of the rating agency, the date of issuance and the assigned rating grade, and it must be updated following any change or amendment.
If a company’s or foreign branch’s credit rating falls below the required minimum level, the resolution requires corrective measures following issuance of the rating report. A remediation plan, including a timeframe and milestones, must be submitted by the board within 90 days. The resolution states that the IRU may take supervisory measures in cases of non-compliance, with violations subject to legal liabilities under applicable law.
