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Questions and Answers
Which insurance company had the highest net incurred claims in both 2019 and 2020?
Which insurance company had the highest net incurred claims in both 2019 and 2020?
What percentage did Wethaq Takaful Insurance's net incurred claims decrease by?
What percentage did Wethaq Takaful Insurance's net incurred claims decrease by?
Which company had a significant change in net incurred claims in 2020?
Which company had a significant change in net incurred claims in 2020?
Compared to 2019, how did net incurred claims change for the conventional insurance companies?
Compared to 2019, how did net incurred claims change for the conventional insurance companies?
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What was the net incurred claims for First Takaful Insurance in 2020?
What was the net incurred claims for First Takaful Insurance in 2020?
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What is the projected value of Kuwait's insurance market by 2024?
What is the projected value of Kuwait's insurance market by 2024?
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What was the retention ratio for Takaful in 2020?
What was the retention ratio for Takaful in 2020?
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What was the loss ratio for Conventional insurance in 2020?
What was the loss ratio for Conventional insurance in 2020?
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What was the total profit or loss reported for Takaful?
What was the total profit or loss reported for Takaful?
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What is the combined ratio for Takaful in 2020?
What is the combined ratio for Takaful in 2020?
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How much gross written premium is estimated for the insurance market by 2024?
How much gross written premium is estimated for the insurance market by 2024?
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What was the total assets of the conventional insurance sector?
What was the total assets of the conventional insurance sector?
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What was the annual growth rate expected for Kuwait's insurance market?
What was the annual growth rate expected for Kuwait's insurance market?
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What was the retention ratio for Conventional insurance in 2020?
What was the retention ratio for Conventional insurance in 2020?
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Which sector had a lower loss ratio in 2020?
Which sector had a lower loss ratio in 2020?
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Which company recorded the highest decline in net premiums?
Which company recorded the highest decline in net premiums?
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What was the overall increase in the insurance industry's net premiums?
What was the overall increase in the insurance industry's net premiums?
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Which company reported a net premium increase of 5%?
Which company reported a net premium increase of 5%?
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Which company had a net premium decline that was not among the highest?
Which company had a net premium decline that was not among the highest?
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Which two companies had negative movements in net premiums?
Which two companies had negative movements in net premiums?
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What percentage did Kuwait Insurance Company's net premium decline?
What percentage did Kuwait Insurance Company's net premium decline?
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Which company saw a slight increase of 1% in net premiums?
Which company saw a slight increase of 1% in net premiums?
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Which company had the least decline in net premiums?
Which company had the least decline in net premiums?
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Which company had the highest profit in 2020?
Which company had the highest profit in 2020?
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What was the change in the combined ratio for Gulf Insurance from 2019 to 2020?
What was the change in the combined ratio for Gulf Insurance from 2019 to 2020?
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Which company improved its combined ratio by 18% but remained over 100%?
Which company improved its combined ratio by 18% but remained over 100%?
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Which company reported negative net earnings in 2020?
Which company reported negative net earnings in 2020?
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In what year did First Takaful Insurance have the highest net loss?
In what year did First Takaful Insurance have the highest net loss?
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What is the expected growth rate for the life business between 2019 and 2024?
What is the expected growth rate for the life business between 2019 and 2024?
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How much is the approved investment by First Takaful for the new Islamic Insurance Company in Pakistan?
How much is the approved investment by First Takaful for the new Islamic Insurance Company in Pakistan?
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What is the share capital set for the new life insurance company in Egypt by Kuwait Insurance Company?
What is the share capital set for the new life insurance company in Egypt by Kuwait Insurance Company?
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What is the financial strength rating confirmed for Kuwait Insurance Company by AM Best?
What is the financial strength rating confirmed for Kuwait Insurance Company by AM Best?
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What is the combined ratio for the insurance industry in Kuwait for 2020?
What is the combined ratio for the insurance industry in Kuwait for 2020?
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What type of insurance product will the new Pakistani insurer focus on?
What type of insurance product will the new Pakistani insurer focus on?
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What is the reported loss ratio of the insurance industry in Kuwait for 2020?
What is the reported loss ratio of the insurance industry in Kuwait for 2020?
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How does the ongoing COVID-19 Pandemic affect the global economy?
How does the ongoing COVID-19 Pandemic affect the global economy?
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What does the Return on Equity (ROE) ratio measure?
What does the Return on Equity (ROE) ratio measure?
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Which company had the highest Return on Equity in 2019?
Which company had the highest Return on Equity in 2019?
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What was the Return on Equity for Warba Insurance Company in 2020?
What was the Return on Equity for Warba Insurance Company in 2020?
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In 2020, which company had a negative Return on Equity?
In 2020, which company had a negative Return on Equity?
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How did the ROE for Kuwait Insurance Company change from 2019 to 2020?
How did the ROE for Kuwait Insurance Company change from 2019 to 2020?
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Which insurance company recorded a ROE of 9% in both 2019 and 2020?
Which insurance company recorded a ROE of 9% in both 2019 and 2020?
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In which year did the ROE for Gulf Insurance Company drop to 14%?
In which year did the ROE for Gulf Insurance Company drop to 14%?
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What is the lowest ROE recorded among the listed insurance companies in 2020?
What is the lowest ROE recorded among the listed insurance companies in 2020?
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Study Notes
Insurance Industry Kuwait 2020
- SHMA Consulting provided actuarial services to 8 companies in Saudi Arabia, 11 in the UAE, and other GCC companies (Kuwait, Oman, Qatar, Bahrain). They also provided services since 1990.
Table of Contents
- The document contains various sections on the Kuwaiti Insurance Industry in 2020.
- Sections cover Company information, Performance summary, Market Share and Premium, Claims and Ratios, Profitability Analysis, and Industry Benchmark.
- Other sections cover the impact of COVID-19 and various market highlights.
Limitations and Disclaimers
- Data used in the report was extracted from financial statements of listed companies on Boursa Kuwait.
- The report includes 8 insurance companies (6 conventional, 2 Takaful).
- The net profit/loss for Takaful companies reflects shareholder results only.
- The report is for general informational purposes only and should not be taken as professional advice.
Insights for CEOs
- 2020 saw a significant increase in Gross Written Premium (KD 763 Mn) compared to 2019.
- Total assets in Kuwait in 2020 were KD 1871 Mn.
- The retention ratio was around 50% for conventional companies and close to 60% for Takaful ones in 2020.
- The combined ratio for 2020 was slightly higher than that for 2019 for both conventional and Takaful companies.
Market Highlights
- Kuwait's insurance market is anticipated to reach nearly USD 2 billion in premium by 2024.
- Life and non-life insurance growth is projected at 5.8% and 8.5%, respectively, from 2019 to 2024.
- First Takaful Insurance is investing in a new Takaful insurer in Pakistan.
- A life insurance company is being established in Egypt by Kuwait Insurance Company.
- There is a new mobile application for insurance services called Saiyarti.
Industry Benchmark
- The weighted average retention ratio in 2019 was 51% and increased to 57% in 2020.
- Weighted average loss ratio increased slightly, from 67% in 2019 to 69% in 2020.
- Expense ratio showed improvement for many, remaining slightly below 80%.
- Combined ratio analysis showed slight volatility compared to 2019 for many Kuwaiti companies.
Impact of COVID-19
- The COVID-19 pandemic had a widespread impact on global economies.
- Insurers were monitoring the situation and implemented business continuity plans.
Market Share Proportion
- Gulf Insurance Company had the highest market share proportion in 2020.
Gross Premium
- The period between 2019 and 2020 saw a substantial increase in the gross written premium by Gulf Insurance Company.
Gross Premium Movement
- Gulf Insurance Company experienced a significant rise in its gross premium (12.78%) while First Takaful decreased by (-40.30%).
- Average growth of Kuwait's insurance market was around 7.78% in 2020.
Net Premium
- Net premium saw an increase of KD10 million in the Gulf Insurance Company during the period.
Net Premium Movement
- Kuwait Reinsurance Company and Gulf Insurance Companies saw modest positive growth while several other companies experienced declines.
Retention Ratios
- Kuwait Reinsurance Company and Al-Ahleia Insurance saw consistent high retention rates.
- There was a noticeable positive shift in the retention ratio of First Takaful Insurance during the assessment period.
Net Earned Premium
- Gulf Insurance Company reported the greatest net earned premium in both 2019 and 2020.
Net Incurred Claims
- Gulf Insurance Company held the highest net incurred claims in 2019 and 2020
Loss Ratios
- Wethaq Takaful Insurance had the highest loss ratios and other companies experienced declining trends.
Expense Ratios
- First Takaful Insurance had the highest expense ratio.
Combined Ratios
- Kuwait Reinsurance and Al-Ahleia showed consistent low combined ratios.
- Wethaq Takaful experienced the highest combined ratio values.
Net Profit/(Loss) (After Tax)
- Gulf Insurance Company showed the highest positive net profit.
- First Takaful and Wethaq Takaful reported the lowest net profit values.
Net Profit/(Loss) (After Tax)-Movement
- Wethaq Takaful and First Takaful displayed significant net losses.
- Most other companies showed improved net profits, as did some entities that showed net losses in 2019.
Asset Classification Aggregate
- About 39% of the total assets are comprised of investments.
- Approximately 14% are outstanding receivables and 39% are other assets.
Liability and Equity Classification Aggregate
- Liabilities account for the bulk of the insurance company's assets (72%).
- Equity represents approximately 28% of assets.
Return on Equity (ROE)
- Kuwait Reinsurance experienced a stable ROE over the period.
- First Takaful and Wethaq Takaful suffered declines.
Return of Assets (ROA)
- Gulf Insurance and other entities saw slight improvements or growth in ROA compared to the previous period.
Meet the Team
- Information about various individuals working in SHMA Consulting.
Feedback
- SHMA Consulting provides an analysis of the Kuwaiti insurance industry.
- They welcome feedback on the analysis.
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Description
Test your knowledge on the Kuwaiti insurance market with this quiz focused on key metrics from 2019 and 2020. Questions cover net incurred claims, retention ratios, and projected market values. Challenge yourself to see how well you understand the trends in this sector!
