Kuwait Insurance board approves launch of Egypt insurance life unit

Kuwait Insurance Company said on Sunday its board approved plans to launch a life insurance unit in Egypt.

The Egyptian unit will have a capitalisation of 100 million Egyptian pounds ($6.4 million), Kuwait Insurance added in a bourse disclosure.

The board vote on the new company is subject to regulatory approvals in Kuwait and Egypt, the company explained.

On Saturday, the Kuwaiti insurer said its board would meet to discuss setting up a new subsidiary in Egypt.

Kuwait Insurance has been the first insurance company in Kuwait and the GCC since its inception in 1960.

Kuwait Insurance’s ratings

In March, rating agency AM Best affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” of Kuwait Insurance, with a stable outlook. The ratings reflected the company’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management.

Also in March, Moody’s Investors Service (“Moody’s”) completed a periodic review of the ratings of Kuwait Insurance. Moody’s assessed its A3 insurance financial strength rating, which reflected the company’s (i) strong position in the domestic market with an established brand and a good reputation for service, (ii) its good capitalisation and (iii) its sustained strong underwriting profitability with the five year average combined ratio of 83.8 percent at YE 2019.