Pressure on Al Ahleia

Last July, Ahleia Insurance submitted a takeover bid for Kuwait Re, offering approximately 18.4 million KWD (61 million USD) for a 61.27% stake in its capital. The transaction will be funded by means of cash and a loan.

Prior to this announcement, Moody's confirmed the financial strength rating of A3 with stable outlook granted to Al Ahleia.
According to the agency, this transaction could have a negative impact on the capital and financial flexibility of the insurer. Moody's believes that this takeover increases the volatility of the financial performance of Al Ahleia, expecting a gradual increase in the frequency of major claims.
These fears are likely to impact the rating of the insurer whose prospects could be revised from stable to negative.