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July 27, 2014
Mr. Murad Ali Murad, Chairman of Bahrain Kuwait Insurance company (BKIC) announced that the company’s net profit for the first half of the current year increased by 30%, from BD 2 million last year to BD2.6 million this year and the net profit for the 3 months ending 30th June 2014 is BD 727,000 as compared to BD 1.1 million for the same period last year.
He stated that Technical profits (core business) decreased by 19% over the period under study, from BD 1.6 million in 2013 to BD 1.3 million in the current year, mainly due to the increase in loss ratio in motor department and also due to provision of additional reserves (BD 133,000) for claims incurred but not reported (IBNR).
Mr. Murad added that the investment income in the 1st half of current year reached BD 1.8 million as against BD 776, 000 earned in the same period last year. This was despite provision of additional reserves amounting to BD363, 000 for impairment in value of old investments. However, it is worth mentioning that the company has recorded extraordinary profits of BD 1.5 million from the sale of real estate property located in Diplomatic area.
Furthermore, the company has taken additional reserve valued at BD 100,000 towards provision for bad and doubtful debts against BD 70,000 last year.
Shareholders’ equity increased by 3%, from BD 33.3 million at the end of last year to BD 34.3 for the end of first half this year. Return on shareholders’ equity for the first quarter of current year is 7.7% as against 6.5% for the same period last year. Earnings per share over the 1st half of year 2014 reached 37 fils, as compared to 28 fils for corresponding period last year. Technical reserves increased by 10% from 13.5 million and the end of last year to 14.8 million for the end of 1st half this year.
Mr. Ebrahim Al Rayes, C.E.O. of BKIC stated that the premium increased marginally by 11%, from BD 19 million for the 1st half of last year to BD 21.2 million for the same period this year. This increase reflects the confidence the clients have in the company as a market leader. The Company has recently launched online sales through its revamped website ( www.bkic.com ). This facilitates clients to buy personal insurances such as motor, travel and home through internet without the need of visiting the company’s offices. Mr. Ebrahim added that the company is always on the lookout for innovative solutions that enrich its customer service. He also mentioned that BKIC was granted (A-) credit rating by A.M. Best. This reflects the sound financial strength of the company which enables it to adequately meet its liabilities. He also mentioned that he hopes that the company achieves a better result in the coming period.