Mubasher: Warba Insurance announced that Standard & Poor's Financial Services (S&P) has affirmed the company’s rating at ‘BBB’, with a ‘Negative’ outlook.
S&P kept the company’s rating unchanged due to a decline in revenues, in addition to a decrease in the subscription offered in 2016 and 2017 to boost the technical reserves, Warba Insurance noted in a statement to Boursa Kuwait on Sunday.
The company witnessed a significant improvement in its recent financial statements where it recorded profits during 2018, as well as the first quarter of 2019.
Warba Insurance’s competitive position has been undergoing a pressure in the recent few years due to losses registered in subscription offers and investments, the statement added.
In July 2018, S&P had downgraded the company’s rating to ‘BBB’ from ‘BBB+’, while the outlook had been downgraded to ‘Stable’ from ‘Negative’.
During fiscal year 2018, Warba Insurance turned profitability with approximately KWD 781,500, against incurring losses of about KWD 690,410 during the prior year.
Moreover, in the first quarter of 2019, the company reported a 79.3% year-on-year increase in profits to stand at around KWD 683,500, versus about KWD 381,200 in the same period a year ago.
