August 16, 2017
Bahrain Kuwait Insurance Company’s Board has approved the financial results of the company for the period ended 30 June 2017 in its meeting held on Thursday, 10 August 2017. It should be noted that the consolidated financial statements include the financial statements of Takaful International “subsidiary”, the first Islamic insurance company in the Kingdom of Bahrain and the third largest in terms of gross premiums. In the first half of this year, Bahrain Kuwait Insurance acquired 26.35% of Takaful International (22.75% of Bahrain Islamic Bank and 3.6% from the Mandatory Offer) in addition to 40.93% held in the previous period to reach 67.28%. The Board informed that the Company achieved a net profit of BD 1.14 million in the first half of 2017 compared with BD 2.3 million in the first half of 2016. Technical profit dropped by 71% from BD 1.48 million to BD 434,000 due to the increase in the net claims reported during the period from BD 4.2 million to BD 7.8 million and a huge increase in Unearned Premiums Reserves (BD 2.3 million). The investment net income decreased by 7%, from BD 1.19 million in the first half of last year to BD 1.11 million in the first half of this year due to reduction in gain from sale of investments. As regards to the results of three months ended 30 June 2017, the net profit decreased by 52.4%, to BD 631,000 compared to BD 1.33 million in the same period last year due to the decrease in net investment income from BD 915,000 last year to BD 435,000 in the current year. The technical profit during the period decreased from BD 638,000 in the previous year to BD 396,000 this year due to increased loss ratio from 70% to 79%. The earnings per share at the end of the current period is 16 fills compared to 32 fills in the same period of last year. Return on equity was 3.5% compared with 6.9% in the same period last year, and net technical reserves rose significantly from BD 13.10 million at the end of the previous year to BD 27.49 million at the end of the current period. Mr. Ebrahim Al Rayes, Chief Executive Officer of the company said that the gross premium revenue recorded a good growth by 42% from BD 21.56 million in the first half of last year to BD 30.64 million in the first half of this year. This growth was contributed from acquisition of Takaful International and also from the customer confidence in the company as a leading company in Bahrain market. He also hopes that the coming period would be better for the company in terms of production and profitability. He also said that customers now can avail insurance services at any time and at various locations in Bahrain. The customers can purchase personal line insurances or renew them through the website or through the company's branches located in Arad, Manama, Riffa and Salmabad in addition to Saar Mall branch. They can also buy their personal line products through all the branches of Bank of Bahrain and Kuwait spread across Bahrain.