Kuwait Insurance Company S.A.K.

Climate Impact & Sustainability Data (2022)

Established governance practices as a listed firm and a track record of meeting its financial and operational objectives.
Transparent financial strategy with a conservative approach to capital and leverage.
Timely reporting of financial statements (quarterly and annually).
Widely diversified shareholding structure, including an influential stake of around 15% by its main strategic shareholder, and a good number of independent board of directors, which supports good board oversight.

Moderate concentration risks in KIC's investment portfolio and client base, increasing exposure to potential income statement and balance sheet volatility.
Low penetration in the life and medical business.
High levels of price competition in the Kuwaiti property and casualty (P&C) insurance market that could challenge its profitable growth.
Relatively high exposure to the concentrated and volatile local equity market heightens investment risk.
Sizeable exposure to the banking sector, which is in the form of both equities and debt securities comprising 83% of the company's total investment portfolio. This constitutes a significant asset concentration on KIC's balance sheet.

Intention to penetrate the growing Takaful market.
Prudent risk management approach ensuring strong underwriting profitability.
Gradually shifting its investment strategy from passive to active, aiming for higher investment returns that will support both its revenues and capital base.
Extensive reinsurance programme mitigating exposures on a net basis.
Introduction of new life and medical products to aid business mix and client diversification.
Tighter regulation by the Insurance Regulatory Unit (IRU) is likely to benefit larger insurers in the market, including KIC, as smaller players are unable to comply with new regulations that will somewhat erode any unhealthy price competition.
Revisions to its underwriting policies and pricing for its motor (with new management in place) and medical portfolios are likely to further support its earnings.