Reflects the reinsurer’s improved technical performance – AM Best
AM Best Europe has revised Kuwait Re’s outlook to stable from negative and affirmed the reinsurer’s financial strength rating of A- (excellent) and the issuer credit rating of A-.
The revision in the outlook reflects the company’s improved technical performance benefitting from stronger internal controls and risk selection.
The ratings incorporate the company’s supportive level of risk-adjusted capitalisation and stability of earnings in recent years.
Kuwait Re’s capital position remains supportive of the current ratings despite weakening in 2012 as a result of increased underwriting leverage.
The full profit retention in 2012 has partially offset the increased capital requirement, however. AM Best said that the reinsurer’s prudent dividend policy and the further de-risking of its investment portfolio is likely to support planned growth and stabilise its capital position.