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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Affirms Credit Ratings of Kuwait Insurance Company S.A.K.P.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Kuwait Insurance Company S.A.K.P. (KIC) (Kuwait). The outlook of these Credit Ratings (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.

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 through retained earnings 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 financial strength. Additionally, the company has concentrated exposures to higher-risk equity holdings, which has the potential to introduce volatility to its capital position.

KIC has a track record of strong operating performance, demonstrated by a return-on-equity ratio of 7.5% in 2024, with earnings supported by robust underwriting results from non-life and life portfolios over the past five years. In 2024, KIC generated a non-life net-net combined ratio of 89.5% (as calculated by AM Best). Results have been complemented by good, albeit volatile investment performance, with an adjusted return on assets ranging from 4.8% to 9.3% between 2020 and 2024. In 2024, KIC reported pre-tax profits of KWD 11.8 million (2023: 12.3 million), a result aligned with its historical earnings trend.

KIC holds a well-established position within its domestic insurance market of Kuwait, from which it sources all its premium. The company generated insurance service revenue of KWD 69.5 million (USD 226.3 million) in 2024, up from KWD 53.8 million (USD 170.2 million) in 2023. 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. In 2023, KIC expanded in the takaful segment, following the acquisition of National Takaful Insurance Company K.S.C. (closed), renamed Kuwait Islamic Takaful Insurance Company K.S.C.C. The integration of the takaful business supports product diversification and forms part of KIC’s broader business plan to grow across all segments in its domestic market.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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