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November 10, 2014
Mr. Murad Ali Murad, Chairman of Bahrain Kuwait Insurance Company (BKIC) announced that the company’s net profit for the period ended 30th September 2014 increased by 30%,from BD 2.8 million last year to BD 3.7million this year,while the net profit for the 3 months ending 30th September 2014 amounted to BD 1.1 million as compared to BD 828,000 for the same period last year.
He said that despite the slight decline in underwriting profit by 1.4%, from BD 2.6 million as of end Q3-2013 to BD 2.56 million as of end Q3-2014,the three months ended 30 September 2014 showed a remarkable improvement due to progress in the loss ratio,after adrop in Q2-2014 attributable to the increase in Motor Claims.
Mr. Murad further added that investment income as of end Q3-2014 registered an impressive growth of 98%, reaching BD 2 million,which includes the extraordinary profits of BD 1.5 million from the sale of real estate property located in Diplomatic area during the Q1-2014, as compared with BD 1 million in the same period oflast year.
Shareholders’ equity increased by 7%, from BD33.3 million as of end Q3-2013 to BD35.7 million as of end Q3-2014. Return on Shareholders’ Equity(ROE) increased to10.36% as of end Q3-2014compared to8.88% for the same period last year. Earnings Per Share (EPS) has reached 52fils as of end Q3-2014compared to40fils as of end Q3-2013. Technical reserves increased from BD 13.5million asat the end of last year to BD 13.8million as of end Q3-2014.
Mr. Ebrahim Al Rayes, C.E.O of BKIC stated that Gross Premiums registered a growth of 9%, from BD 25.8 million as of end Q3-2013 to BD 28.2 million as of end Q3-2014, and that BKIC is stillthe market leader in terms of Gross Premiums. He also mentioned that one of the main challenges that the company facing at present is the fierce competition between the insurance companies in both Bahrain and Kuwait markets alike, especially in the motorand medical insurance, which putmore pressure on prices which consequentlyaffects the profits of these companies.
Mr. Al Rayes added that the company was recently granted (A-) credit rating by A.M. Best, which is the best credit rating in the local market.
It is worth mentioning that BKIC is a member of Gulf Insurance Group owned by Kuwait Projects Company and FairFax International.