AM Best Assigns Credit Ratings to Kuwait International Takaful Insurance Company K.S.C. (closed)
AM Best has assigned the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) to Kuwait International Takaful Insurance Company K.S.C. (closed) (KITI) (Kuwait). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect KITI’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
KITI operates under a Mudaraba model, in which the shareholders’ fund manages the takaful operations and shares in the policyholders’ investment and underwriting results based on a Mudarib share of up to 50%. AM Best assesses the company’s risk-adjusted capitalisation on a combined basis, including its policyholders’ and shareholders’ funds, due to the requirement that the shareholders’ fund has to support the policyholders’ funds if it falls into a deficit.
KITI’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), on a combined policyholder and shareholder funds basis. BCAR scores were comfortably above the minimum required level for the strongest assessment at year-end 2025, underpinned by the company’s conservative investment strategy and good liquidity. BCAR scores are expected by AM Best to remain at the strongest level prospectively. An offsetting balance sheet strength factor is KITI's small capital base by global standards, making it more sensitive to potential volatility.
