Mubasher: Moody's Investors Service has assigned on Thursday a ‘Baa1’ insurance financial strength rating (IFSR) to Kuwait-based Warba Insurance Company, with a ’Stable’ outlook, according to a recent report.
Moody's rating reflects Warba's strong position in the domestic market, with a market share of around 11.4%; the company's strong product diversification within the Kuwaiti market; and Warba's strong capitalisation with total equity of KWD 45.3 million ($149 million) which accounts for 52% of total assets, the report noted.
“Warba has an established brand and a good reputation for its service capability, particularly within life and medical insurance, with overall total gross written premiums of KWD 37.1 million in 2015 ($122 million),” according to Moody’s.
Warba Insurance’s rating could be upgraded if significant improvements are seen in asset quality, with a greater focus on bond investments and deposits; and/or there is an improvement in profitability, with return on capital of over 8% and/or combined ratios below 85% consistently; and/or through wider geographic diversification, with profitable underwriting positions in the broader GCC, Moody’s clarified.
