2014-04-25 15:25:04 -
A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of “a-” of Kuwait Reinsurance Company K.S.C. (Closed) (KRe) (Kuwait). The outlook for both ratings remains stable.
The ratings of KRe reflect its supportive risk-adjusted capitalisation, track record of good operating performance and geographically diverse underwriting portfolio. An offsetting rating factor is that its operating results are becoming increasingly driven by investment income.
Risk-adjusted capitalisation remains supportive of the current rating level, with underwriting risks and the company’s exposure to private equity funds driving the capital requirement. Prospective risk-adjusted capitalisation is largely dependent on KRe’s ability to supplement capital and surplus to support future expansion plans.
KRe has a track record of good operating performance, demonstrated by
profit generation in each of the past five years. For 2013, the company reported a pre-tax profit of USD 6.8 million, compared with USD 9.8 million in 2012. Operating results, whilst continuing to be upheld by positive technical performance, are largely driven by strong investment income.
The company’s underwriting portfolio continues to be geographically diverse, with risks spread across more than 90 countries. KRe’s operations encompass the Middle East and North Africa, Asia-Pacific and Central and Eastern Europe. Further diversification arises from the company’s participation on a limited number of quota-share programmes for Lloyd’s syndicates.
Positive rating actions are unlikely in the short to medium term. A significant deterioration in operating performance or risk-adjusted capitalisation could result in negative rating actions.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M.
Best Europe - Rating Services Limited Supplementary Disclosure : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
This rating announcement has been issued by A.M. Best Europe – Rating Services Limited, which is a subsidiary of A.M. Best Company.
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