Reinsurer Kuwait Reinsurance Company K.S.C.P. (Kuwait Re) has announced its results for the first-nine months of 2018, posting an increase in net income driven by growth in net earned premiums to KD 27.84 million (US$92mn).
The reinsurer’s after-tax net income for the nine-month period increased by 7% when compared with the same period in 2017, to KD 2.97 million (US$9.8mn), which the firm states is mainly contributed by the growth in net earned premiums.
Gross written premiums for the period increased significantly year-on-year to KD 41.6 million (US$138mn), a 40% rise on 2017’s figure, while net earned premiums jumped from KD 20.82 million (US$67mn) to KD 27.84 million (US$92mn).
At the same time, the reinsurer improved its underwriting result in the period, by 41% to KD 2.66 million (US$9mn), which resulted in the combined ratio strengthening from 98% in 2017 to 96% for the nine-month period in 2018.
Despite the improved net income and combined ratio, the firm did report higher net claims in the first-nine months of 2018 when compared with last year, of KD 18.09 million (US$60mn). At the same time, net acquisition costs increased to KD 7.1 million (US$23mn), while management expenses also increased, to KD 1.57 million (US$5mn).
Investment income increased at Kuwait Re during the first-nine months of the year, totalling KD 2.35 million ($US8mn), compared with KD 2.08 million (US$7mn) a year earlier.
The reinsurer’s Chief Executive Officer (CEO), Dawoud Al-Duwaisan, commented: “The reinsurance market is facing many challenges, yet approached with the right attitude, those challenges can be mitigated.
“We have maintained our disciplined approach to underwriting, prudent risk management, and are aiming to build and maintain long-term relationships with our partners by being approachable, professional, and agile. It is only with the support of our sincere partners, that we were able to achieve such consistent results.”
