Despite COVID-19 pandemic, Kuwait's insurance companies achieve profits

The total profit amounted to $104mln, compared to the profits recorded within the same period in 2019

  
Skyline at sunset in Kuwait City, Kuwait. Image used for illustrative purpose.

Skyline at sunset in Kuwait City, Kuwait. Image used for illustrative purpose.

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KUWAIT CITY: Despite the negative economic repercussions of the COVID-19 pandemic imposed on all economic sectors in Kuwait and the world, the insurance companies in Kuwait were able to avoid these negative repercussions and continue to achieve good results and profits during the current year, reports Al-Anba daily.

The reasons that supported the insurance sector companies to continue achieving profits during their results this year include the continued growth in written premiums and the increase in their shares of investment in other companies, as well as the increase in operating revenues and technical profits during the nine months and the third quarter of the current year.

Based on the study conducted by the daily, it appears that insurance companies operating in the Kuwait market managed to achieve good profits during the first nine months of this year. The total profit amounted to KD 31.8 million, compared to the profits recorded within the same period in 2019 that amounted to KD 33 million – a slight decline of 2.6 percent. This indicates that Kuwait’s insurance companies managed to avoid any negative effects or repercussions for the COVID-19 pandemic.

The insurance companies were able to make good profits during the third quarter of this year, reaching KD 7.8 million.

While it was able to achieve better profits during the second quarter of the year in contrast to other economic sectors, some of them suffered losses, and the profits of some others had declined significantly. Kuwait’s insurance sector had achieved profits amounting to KD 9.4 million in the second quarter.

Gulf Insurance in the lead

Among the companies that achieved the highest profits during the first nine months of 2020, Gulf Insurance Company topped the sector with profits amounting to KD 13.09 million. This is a growth of 22.3 percent compared to profits of KD 10.7 million achieved in the same period last year. It is followed by Kuwait Insurance Company with profits of KD 10.29 million and a growth of 18 percent compared to profits totaling KD 8.7 million for the same period in 2019.

Al-Ahlia Insurance Company came third with KD 8.98 million, compared to KD 7.8 million during the same period in 2019, with a growth of 14 percent. This was followed by the Reinsurance Company with KD 4.2 million and a growth of 9 percent, compared to profits of KD 3.8 million during the same period in 2019.

Positive results

As for the profits of the third quarter of this year, the Gulf Insurance Company also topped the list of the sector’s highest profitable companies in the third quarter with KD 3.25 million, followed by Al-Ahlia Insurance Company with KD 2.42 million dinars, Kuwait Insurance Company with KD 746,000, and Warba Insurance with KD 411,000, a jump in its profits by an increase of 182 percent compared to the profits of KD 145,000 in the second quarter.

The insurance sector had recorded good profits during the second quarter of the year, despite the state of economic closure that Kuwait witnessed to confront the COVID-19 pandemic particularly during the months of May and June. The Gulf Insurance Company was able to achieve the highest profits in the sector during the second quarter by KD 6.78 million, followed by Al-Ahlia Insurance Company with KD 3.3 million, and Kuwait Insurance Company with KD 2.5 million.

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