press release on the first quarter 2010 result
Kuwait Re reported a strong growth in written premium with a satisfactory net income for the Company, given the prevailing depressed climate on investment.
Total written premium increased by 76% to KD 9.24 MLN (KD 5.24 MLN in 2009) on Receipt Basis of Accounting . While strengthening its position in its core MENA region, Kuwait Re continues to expand its operation in other Afro-Asian markets thereby improving further its business mix and diversity . Premium from MENA region accounts for 49% and the balance is spread in other 35 countries in Afro-Asia.
On Gross written premium , the operating cost ratio has increased to 21.3% from 20% in the corresponding period last year . Despite an increased levels of claims on the property and accident side, the incurred loss ratio stayed at last year’s level at 58.7% due to improved marine result. The combined ratio for the period is 98.6% as against 97.1% for the same period last year . Mr. Amir Al Muhanna – General Manager stated that “considering the high growth in gross premium and the associated increased unearned premium reserve, we are satisfied with the level of our combined ratio”.
Invested assets has marginally increased to KD 57.34 MLN from KD 56.49 MLN at 2009 year end. Investment Income for the period excluding unrealised gain/(loss) is KD 0.52 MLN as against an investment loss of KD 0.8 MLN in the corresponding period of last year . Mr. Amir Al Muhanna commented that “the return on investment of 4.15% at the end of this quarter is commensurate with the level of risks we are prepared to take on our investment”.
Shareholders’ equities at 2009 year end was KD 36.4 MLN and at the end of this quarter it stands at KD 36.6 MLN after having paid 5% cash dividend in 2010 for the year 2009.
Net income for first quarter 2010 is 0.58 MLN (before tax) against a loss of KD 0.19 MLN for the same period last year . Mr. Amir Al Muhanna concluded “we are satisfied with this result, given the current depressed state of the reinsurance market and the continuing downward pressure on investment returns”.