Kuwait Reinsurance Company K.S.C.P (Kuwait Re) has posted its results for the first half of 2019, reporting a 49% increase in net profit to KD 2.87 million (US $9.44 million).
The result compares with net profit of KD 1.92 million ($6.31 million) recorded in the first half of 2018, and net income of KD 3.37 million ($11.08 million) for the full year.
Kuwait Re largely attributed the increase to improvements in its underwriting result, which grew by 23% to KD 2.30 million ($7.56 million) in H1 2019, compared to KD 1.87 million ($6.15 million) last year.
This was also reflected in the reinsurer’s gross written premium, which similarly increased by 23% to KD 41.31 million ($135.84 million) during the period, versus KD 33.51 million ($110.19 million) previously.
Profits were also significantly boosted by an improvement in investment income, which added to the bottom line KD 2.17 million ($7.14 million) with a yield of 4.91%, compared to KD 1.43 million ($4.70 million) with 3.46% yield in H1 2018.
Overall, Kuwait Re’s invested assets increased 3% to KD 89.75 million ($295.13 million), up from KD 87.01 million ($286.12 million) at the end of 2018. The total assets of Kuwait Re also grew by 17% to KD 151.65 million ($498.68 million).
Dawoud Al Duwaisan, Chief Executive Officer (CEO) at Kuwait Re, commented: “The results are driven by strong underwriting performance, as well as excellent investment income. It reflects the advantage of being a composite reinsurer with a diversified book of business, and the positive impact of actions taken to optimize capacity allocation.”
“Our underwriters are working harder to manage the portfolio risk, while negotiating practical terms and conditions,” he continued. “We aim to generate real and sustainable returns that allow us to add value to all stakeholders.”
Kuwait Re’s combined ratio remained stable at 95.7% over the first six months of the year (95.9% in H1 2018), while its shareholders equity increased 5% to KD 51.14 million ($168.17 million), up from KD 48.69 million ($160.11 million) at the end of 2018.
