Kuwait Reinsurance Company K.S.C.P. has reported that an improved investment performance and higher net earned premiums contributed to a 10% rise in net income for the 2018 financial year.
The reinsurer’s net income spiked from KD 3.06 million (USD 10 million) in 2017 to KD 3.37 million (USD 10.9 million) in 2018.
Kuwait Re states that higher investment income, which increased from KD 2.36 (USD 7.8 million) to KD 2.96 million (USD 9.7 million) and higher net earned premiums, which increased to KD 37.93 million (USD 124.9 million), greatly contributed to the 10% rise in net income for the 2018 financial year.
Gross written premiums increased substantially in the period, up 33% to KD 46.56 million (USD 153.3 million), which the reinsurer says is in line with its approved business plan.
Commenting on the company’s 2018 results, Chief Executive Officer (CEO) Dawoud Al-Duwaisan, said: “We are glad to report that the objectives of 2018 business plan were achieved. While the market remained soft and competitive, Kuwait Re endeavoured to enhance its geographical diversification and business mix, while maintaining a disciplined approach to underwriting, and prudent risk management. We continue to focus on our mission to be a preferred partner in Risk Management by being approachable, professional, and agile.”
The reinsurer’s underwriting result also improved dramatically in 2018, jumping 30% year-on-year to KD 3.25 million (USD 10.7 million), helping the firm’s combined ratio strengthen from 98% to 97%.
Net claims did increase for the reinsurer year-on-year, up from KD 18.91 million (USD 62.3 million) in 2017 to KD 24.86 million (USD 81.8 million) in 2018, while acquisition costs also increased year-on-year, to KD 9.82 million (USD 32.3 million).
Despite the increased claims and acquisition costs, Kuwait Re’s improved underwriting result, investment performance and higher net earned premiums resulted in a solid overall 2018 performance for the company.
