A.M. Best has affirmed the financial strength rating of Kuwait Reinsurance Company (Kuwait Re).
The financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” reflect Kuwait Re’s strong risk adjusted capitalisation, diverse business profile and established enterprise risk management framework.
Partially offsetting Kuwait Re’s ratings is the company’s “volatile” underwriting performance over recent years, according to A.M. Best.
A.M. Best explained that Kuwait Re is in the process of taking strategic actions designed to reduce the volatility of its technical earnings and to improve its underwriting performance.
However, the ratings agency said it “expects this to prove challenging given the ongoing difficult reinsurance market conditions”.
The outlook of these credit ratings remains stable.