July 30, 2015
The Board of Bahrain Kuwait Insurance Company has approved – on Thursday, 30th July 2015 –financials for the 6-month period ended 30th June 2015. The profit for the period amounted to BD 1.8 million, compared to BD 2.6 million for the same period last year. The Chairman of the Board, Mr. Murad Ali Murad, said that the results achieved by the company at the end of the current period is good excluding the extraordinary profit of BD 1.5 million booked in the 1st half of last year on account of sale of an investment property. He said that despite the intense competition among companies especially in motor and medical classes, technical profits recorded a slight increase at the end of the 1st half of this year by 2% to BD 1.34 million from BD 1.31 million in the same period this year. The net investment income decreased to BD 934,000 in 1st half of 2015 compared to BD 1.8 million in the same period last year. Last year’s investment income included extraordinary gain achieved on account of sale of an investment property. It should be noted that the company's investments have increased in the current period due to purchase of 40.93% of the Takaful International Company’s shares during the Q2-2015 at a total cost of approximately BD 2.5 million, and it is hoped that this investment contributes to the growth of the company's profits in the coming periods.
Mr. Ebrahim Al Rayes, CEO said that the company's performance during the three months ended 30 June 2015 is better than the same period last year. The technical profit increased by 33% from BD 745,000 during the three months ended 30 June 2014 compared to BD 988,000 in the Q2-2015, mainly due to the improvement in the net claims and net earnings. He also said that the Gross premium decreased by 6% to BD 20 million at end of the 1st half of 2015 from BD 21.2 million at end of 1st half of 2014, due to intense competition that led to reduction in premium rates in key accounts. Gross premium income of the Kuwait office decreased mainly due to weakening of KWD in the current period as compared to the same period last year. He expected that the coming period would be better for the company in terms of production and profitability.
It is worth mentioning that BKIC continues to maintain its leadership position in Bahrain market and holds A- (Excellent) credit rating by A.M. Best.