AM Best Upgrades Credit Ratings of Al Ahleia Insurance Company S.A.K.P.

AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to "a" (Excellent) from "a-" (Excellent) of Al Ahleia Insurance Company S.A.K.P. (Al Ahleia) (Kuwait). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The 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.

The rating upgrades reflect recent improvements in Al Ahleia's consolidated balance sheet strength fundamentals. Notably, the company's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), has increased, underpinned by robust organic capital generation and the development of significant reserving buffers. Moreover, Al Ahleia's exposure to higher-risk assets has been reducing steadily, with the company reinvesting in cash and fixed income instruments. At year-end 2024, holdings of equities and real estate comprised 25% of total investments, down from almost 40% in 2020.

Al Ahleia has a track record of strong operating performance. The company has reported improving pre-tax profits over the past five years, reaching KWD 25.9 million (USD 84.1 million) in 2024, equivalent to a return on equity of 15.4%. Profitability has been underpinned by good underwriting results, with Al Ahleia achieving a consolidated net-net combined ratio of 89.3% in 2024, as calculated by AM Best. This reflects strong performance arising from the company's direct operations in Kuwait and the improving results reported by its largest 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. The group achieves geographical diversification through its reinsurance operation, Kuwait Re. On a consolidated basis, Al Ahleia generated consolidated insurance revenue of KWD 132.1 million (USD 430 million) in 2024, an increase of 9% against the prior year.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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