For the first six months of the year, Kuwait Re has reported net profit of KD3.09 million (approx. USD10.1 million), which is up 7% on the same period in 2019.
According to the reinsurer, the “technical risk evaluation and prudent capacity allocation” resulted in a solid underwriting performance through H1 2020, absorbing an anticipated dip in investment income amid volatile market conditions.
Kuwait Re’s net investment income reached KD1.77 million (approx. USD5.8 million) with a yield of 3.8% in H1 2020, against investment income of KD2.17 million (approx. USD7.1 million) with a yield of 4.91% in H1 2019.
Overall, the company saw its gross written premiums (GWP) decline year-on-year to KD39.89 million (approx. USD130.5 million) in H1 2020, from the KD41.31 million (approx. USD135.2 million) posted in H1 2019.
While GWP contracted, the firm’s underwriting result improved by 25% in the period to KD2.88 million (approx. USD9.42 million), versus the KD2.3 million (approx. USD7.5 million) posted a year earlier.
In light of the improved underwriting result, Kuwait Re’s combined ratio improved by 2.2 percentage points in H1 2020 to 93.5%.
In addition, the reinsurer has revealed that its total assets have grown by 11% from the end of 2019 to KD165.43 million (approx. USD541.4 million). During this same period, Kuwait Re’s invested assets increased by 3% to KD100.35 million (approx. USD 328.4 million), while shareholders’ equity jumped by 1.8% to KD54.55 million (approx. USD178.5 million).
The solid performance in H1 2020 follows a 40% increase in net profit announced by the firm for the full-year 2019, a period which also saw the firm boost its underwriting result by 20%.