News
AM Best assigns Kuwait Re ratings
| July 21, 2010 by Tracey Scott
AM Best Co has assigned a stable financial and credit rating to Kuwait Reinsurance Company.
The ratings agency has assigned a financial strength rating of A-(Excellent) and an issuer credit rating of a-, with a stable outlook.
AM Best said the ratings reflect Kuwait Re’s strong risk-adjusted capitilisation, robust technical profitability and de-risking of investment assets.
The ratings agency said Kuwait Re’s gross premiums are projected to grow steadily between 5 to 10 per cent in the next two years, after it reported US$89m in gross premiums in 2009.
However, going forward, AM Best said: “Kuwait Re faces challenges to maintain and improve profitability in light of prospective growth plans and expansion in new territories, where the company may have limited experience. In AM Best’s view, it is important that Kuwait Re manages its exposures effectively, particularly regarding property business which has volatile performance, in addition to retro-insurance from foreign markets.”
