November 10, 2013
Mr. Ebrahim Al Rayes - CEO of Bahrain Kuwait Insurance Company (BKIC) announced that the company has achieved a net profit of BD 2.8 million for the nine-month period ended 30th September 2013, as compared to BD 3.1 million in the same period of 2012. The marginal decline of 8.5% in net profit is due to few large losses reported in Fire & General Accidents department. The claims have slightly gone up in Motor department also. Due to this, the underwriting profit slightly dropped from BD 2.6 million as of end Q3-2012 to BD 2.4 million for the same period in 2012. The investment income at the end of Q3-2013 registered an impressive growth of 12%, reaching BD 1 million mark as compared with BD 922,000 in the same period of last year.
The Company registered a gross premium of BD 25.8 million as at end of Q3-2013, same as at end of Q3 - 2012. However, the gross earnings increased by 5% from BD 10.2 million in the Q3-2012 to BD 10.7 million in the Q3-2013.
It should be noted that the net profit for the three months period ended 30 September 2013 amounted to BD 827,000 as compared to BD 1.6 million for the same period last year. This decrease is due to the high loss ratio in the Fire & General Accident department as explained above.
Shareholders' equity, increased by 3%, from BD 31.1 million for the Q3-2012 to BD 32 million as at end of Q3-2013. The return on Shareholders' funds is 8.88% as at end of Q3-2013 compared to 10.39% for the same period last year. Earnings per share is 40 fils as at end of Q3-2013 as against 43 fils as at end of the Q3-2012.
Mr. Al Rayes said that, despite the significant increase in the amount of Motor accidents, the premium rates are still low which reflects the intense competition in the insurance market in Bahrain for this type of insurance. But continuing in this way may expose companies to greater losses in future periods. Mr. Al Rayes also added that prices must be compatible with the degree of risk and have to compete on service only. And he hoped that results will improve in the coming periods and that BKIC will continue to maintain its lead position.