Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of KFH Takaful Insurance Company K.S.C.Global Credit Research - 25 Jan 2022Limassol, January 25, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of KFH Takaful Insurance Company K.S.C. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 18 January 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.The Baa2 insurance financial strength rating of KFH Takaful Insurance Company K.S.C. ("KFH Takaful") reflects (i) a good capitalisation level providing a good loss absorbing capacity, (ii) a good market position as the largest takaful and fifth largest overall insurance group in the Kuwaiti market, and (iii) a good underwriting profitability. The rating is also supported by strong product diversification with a mix of life, health and non-life insurance products as well as relatively good asset quality with high risk assets equating to below 51% of consolidated equity at YE 2020. These strengths are partially constrained by fierce competition with conventional insurers in Kuwait and high concentration in terms of the company's distribution channels as approximately half of KFH Takaful's 2020 gross premiums written are sourced from business generated through its banking parent, Kuwait Finance House K.S.C.P. (KFH, A2 long-term deposit rating, baa3 baseline credit assessment).This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodologies used for this review were Property and Casualty Insurers Methodology published in September 2021 and Life Insurers Methodology published in September 2021. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Nondas Nicolaides VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service Cyprus Ltd. Porto Bello Building 1, Siafi Street, 3042 Limassol PO Box 53205 Limassol CY 3301 Cyprus JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Benjamin Serra Senior Vice President Financial Institutions Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Cyprus Ltd. Porto Bello Building 1, Siafi Street, 3042 Limassol PO Box 53205 Limassol CY 3301 Cyprus JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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