AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Al Ahleia Insurance Company S.A.K.P. (Al Ahleia) (Kuwait).

The Credit Ratings (ratings) reflect Al Ahleia’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect a strengthening of Al Ahleia's consolidated balance sheet strength in recent periods. Notably, the company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), has improved, underpinned by robust organic capital generation, as well as the development of significant reserving buffers. Al Ahleia is expected to continue to grow profitably whilst maintaining a robust capital position, benefiting from its good local market presence, as well as international diversification through its reinsurance arm.

Al Ahleia’s track record of operating performance remains commensurate with a strong assessment. The company has reported improving pre-tax profits over the past five years, reaching KWD 22.7 million in 2023, equivalent to a return on equity of 14.3%. Profitability has been underpinned by good underwriting results, with Al Ahleia achieving a consolidated net-net combined ratio of 89.3% in 2023, as calculated by AM Best. This reflects strong performance arising from the company’s direct operations in Kuwait, as well as the improving results reported by its subsidiary, Kuwait Reinsurance Company K.S.C.P. (Kuwait Re).

Al Ahleia’s business profile reflects its established position as a top tier insurer in Kuwait’s insurance market, where it has a leading position in the commercial insurance segment. The group achieves geographical diversification through its reinsurance operation, Kuwait Re. On a consolidated basis, Al Ahleia generated consolidated insurance revenue of KWD 121.4 million (USD 396.1 million) in 2023, an increase of 16% against the prior year.

Al Ahleia’s and Kuwait Re’s risk management frameworks are considered appropriate for their individual risk profiles. As the group’s risk profile continues to grow in complexity, it will become increasingly important for Al Ahleia to enhance its ERM capabilities at a group level.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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