Kuwait – Mubasher: Moody's Investors Service has affirmed the A3 insurance financial strength rating (IFSR) of Al Ahleia Insurance Co., changing the outlook to negative from stable.
According to the ratings agency, the affirmation and change in outlook to negative follows Al Ahleia’s announcement on 21 July of acquiring a 61.37% stake in Kuwait Reinsurance Co., a reinsurer based in Kuwait, for approximately KWD18.6 million.
“This acquisition will be financed through borrowing and cash on hand. The acquisition will increase Al Ahleia's shareholding in Kuwait Re, up from 30.4% to 92%, placing them as the majority shareholder of Kuwait Re,” said Moody’s.
The acquisition also follows Al Ahleia's offer to shareholders to acquire all outstanding shares of Kuwait Re. Al Ahleia had increased its stake in Kuwait Re to 30.4% on 10 May, as per Kuwait’s capital market regulations. Al Ahleia, thereafter, had to submit a compulsory offer to buy all the stock of all shareholders who are interested in selling their shares.
