Kuwait Reinsurance posts over KD 1 million in 2009 profits

04/03/2010 00:00 AST

Kuwait Reinsurance Company (Kuwait Re) registered profit, before taxes of 1,043,832 Kuwaiti dinars for the year 2009 as compared to loss of KD 1,030,527 in 2008.

This profit has come mainly on the back of improved operational profit. Book value per share stood at last year level of 348 Kuwaiti fils per share, after paying 15 fils per share in cash dividend in 2009 for fiscal year 2008, Kuwait Re General Manager Amir Al-Muhanna told Kuwait News Agency (KUNA).

"The board of directors has decided to recommend the distribution of five percent cash dividend (5 fils per share) and bonus share of 5.23 percent (5.23 shares for each 100 shares) to the general assembly," he said.

He went on to say, "We are pleased at our performance in 2009, which are mainly due to the strategic initiatives being taken by the Kuwait Re''s management for profit oriented and diversified growth in the regions where we operate."

"The results are satisfactory when we consider the still soft primary market rates and the below average and sluggish investment returns prevalent," he added.

"We foresee that the 2010 growth may be moderate till the economic climate improves. It would be necessary to continue to build our financial strength to enable us sustain the present momentum and profitable growth," Al-Muhanna noted.

The total non-life gross premium in 2009 increased by 47 percent over 2008 stands at KD 26.6 million as against KD 18.05 million in 2008. The proportion of premium from the Middle East and North Africa (MENA) region is 43 percent, and premium generated from other Afro-Asian markets is 57 percent of the total, giving a diversified, yet balanced portfolio across the regions, he said.

The Operational costs improved to 23.9 percent of the retained premium. The incurred loss ratio has increased to 60.8 percent from 56.6 percent in 2008.

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KUNA