February 22, 2018
The Board of Directors of Bahrain Kuwait Insurance Company (BKIC) in its
meeting on Wednesday 21st Feb’2018 approved the financial results
for the year ended 31 December 2017 and decided to propose 25% of paid-up
Capital (7,150,000) cash dividend equivalent to 25 fils per share, in addition
to 100% bonus shares as announced earlier. The BOD also decided to increase the
authorized capital from BD 10 million to BD 20 million.
The BOD announced that the Net Profit for the year ended 2017 decreased by 10% from BD 2.9 million in 2016 to BD 2.6 million in 2017. Technical Profit
(Underwriting Profit) was BD1.5 million, lower by 15% when compared with BD
1.76 million in 2016. This was mainly due to the losses incurred by the
subsidiary after additional provision was made towards Technical reserves in
order to strengthen its financial position. On the other hand, Net income from
Investment decreased by 9% from BD 1.75 million in 2016 to BD1.6 million in
2017, as the year 2016 was an exceptional year with non-recurring income from
gain on sale of equity investments.
Earnings per share (EPS) at the
end of the current year stood at 36 fils compared with 40 fils in 2016. The
Return on Equity (ROE) recorded was
7.5% compared to 8.5% in 2016.
As for the results for the three months ended 31 December 2017, Gross
Premium earnings increased to BD 17.6 million as compared with BD 11.7 million
for the same period in 2016. Net premium income increased to BD 7.9 million
compared to BD2.6million for the same period last year and Net Commission and
fees was BD 87,000/- compared to BD 579,000/- for the same period in 2016. Net
Claims increased to BD5.8million from BD2.4 million, while underwriting profit
was BD12,000/- compared to a loss of BD26,000/- for the same period last year.
Investment income decreased to BD 172,000/- from BD 426,000/- whereas the Net
profit increased to BD 268,000/- compared to BD 218,000 for the same period in
It is noteworthy to mention that Bahrain Kuwait Insurance Company now holds
67.28% ownership of Takaful International Company (TIC). The above figures show
the consolidated financial with the subsidiary (TIC), a takaful arm of BKIC.
BKIC will be extending all kinds of support to TIC, whether it be financial or
technical, in order to strengthen and continue to maintain their leading
position in Takaful insurance market.
Mr. Ebrahim Al Rayes, Chief Executive Officer of the company said that despite the insurers face continuing headwinds in the region, the company has achieved a growth of 41% in Gross Premium income, from BD 42.1 million in 2016 to BD 59.5 million in 2017. This would not have been achieved without the continued confidence & trust that our valuable customers reposed in BKIC as the leading insurance company in Bahrain market and its ability to provide all types of insurance products and services. He said that, during the year 2017, the company was able to write business of some large projects in Bahrain and Kuwait. The insurance services offered by the company are now available to customers in all areas of Bahrain. Customers can obtain or renew their personal insurances through the company's website or through the company's branches located in Arad, Manama, Riffa, Salmabad and Saar. They can also buy personal insurance products through our partners BBK and Tasheelat Insurance Company (TISCO) through their branches located in all areas of Bahrain.
He also stated that A.M. Best after a periodic
review of the company's business, affirmed A- (Excellent)rating with a stable
outlook, the highest rating in Bahrain to be awarded to a direct insurer,
reflecting the financial strength of the company to meet its future obligations.
Mr. Ebrahim Al Rayes concluded by saying that, we are looking forward to
increase our market share in 2018, by offering new products and developing our
existing products and services to meet the insurance needs of all our clients.
It is worth mentioning that Bahrain Kuwait
Insurance Company (BKIC) is a subsidiary of Gulf Insurance Group (GIG) which is
the largest insurance Group in Kuwait in terms of written and retained
premiums, with operations in life and non-life as well as Takaful insurance. Gulf
Insurance has become one of the largest insurance networks in the Middle East
and North Africa with companies in Saudi Arabia, Jordan, Lebanon, Syria, Egypt,
Algeria, Iraq, Bahrain, Emirates, Turkey and Kuwait.
– Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder,
followed by the Canadian-based Fairfax Financial Holding Ltd.