Kuwait Reinsurance Company K.S.C.P (Kuwait Re) has reported a 30% rise in net profit for the first nine months of 2019 versus the same period in 2018, to KD 3.87 million (USD 12.7 million).
As well as a 30% rise in profits, which the firm attributes to premium growth and higher investment income, Kuwait Re recorded an improved underwriting result of KD 2.95 million (USD 9.7 million), which is up 11% on the first nine months of 2018.
However, despite the improved underwriting result the reinsurer’s combined ratio declined slightly in the period, from 96.1% in 2018 to 96.5% this year.
Gross written premiums grew by 19% year-on-year to KD 49.71 million (USD 163.6 million), while net earned premiums jumped to KD 32.6 million (USD 107.3 million), compared with the KD 27.84 million (USD 91.6 million) recorded in the first nine months of 2018.
The growth in net earned premiums, combined with a 32% rise in net investment income to KD 10.2 million (USD 33.6 million), were the main drivers of the reinsurer’s 30% increase in profit, year-on-year.
When compared with the end of 2018, Kuwait Re’s shareholder equity increased by 7% to the end of September, 2019 to KD 51.99 (USD 171 million).
At the same time, the reinsurer’s invested assets increased by 8% from the KD 87.01 (USD 286.4 million) recorded at the end of 2018, to the KD 93.71 million (USD 308.4 million) recorded at the end of September, 2019.
