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The increase in the net profit for the year
ended 31st December 2018 compared to last year is mainly due to the significant improvement in the underwriting profits as well as the investment income.
The total assets by the end of 2018 reached
BD 212mn compared to BD 172mn at the end of previous year, registering an
increase of 23%. The shareholder’s equity as at the end of 2018 was BD 36mn
compared to BD 34.5mn as at the end of the previous year, by an increase of 4%. The net technical reserves rose from BD 26.5mn at the end of
the previous year to BD 29.5mn at the end of the current year.
With regards to the financial results for the three
months ended 31st December 2018, the company achieved a net profit
attributable to the shareholders of BD 342,000 compared to BD 267,000 during
the same period of the previous year, with an increase of 28%. The underwriting profits
in the 4th quarter reached BD 112,000, compared to a loss of BD
317,000 in the 4th quarter of last year, with an increase of 135%.
The gross premium revenue increased by 82% from BD 17.6mn to BD 32mn. The total comprehensive income in the 4th quarter 2018 reached BD 885,000
compared to BD 224,000 in the 4th quarter of last year, with an
increase of 295%. The net income from investment increased by 5%,
from BD 172,000 in the 4th quarter of last year to BD 181,000 in the
4th quarter of this year. Earnings
per share during the 4th quarter was 2 fils compared to 4 fils in
the 4th quarter of last year.
The increase in the net profit for the three
months ended 31st December 2018 compared to the same period of last
year is mainly due to the increase in the net premium, increase in net fee and commission income
and decrease in other expenses.
Commenting on the company’s satisfactory results,
the Board of Directors stated that, “The Board is pleased to announce the
positive results for the year 2018, and we achieved this result with the
support and confidence of our customers & business partners bestowed on the
company, and also the dedication & commitment of its management and
employees. The Board hopes that the company continues to achieve the best results
in the ensuing periods.” It is worth mentioning that during the year 2018, the company increased
its stake in Takaful International by acquiring an additional stake to reach to
The Board of directors also decided to propose the distribution of cash
dividend for the year 2018 to the Shareholders who are registered on the date of the
AGM of 15%, equivalent
to 15 fils per share
of paid-up Capital amounting to 14.3mn (2017: 7.15mn).
Also commenting on the results, Mr. Ebrahim
Alrayes, BKIC’s CEO said that, “BKIC is the leading insurance company in
Bahrain market and continues to enhance its services in order to maintain its
leadership positon in the market. While stressing the
importance of the technology in the company’s business, he said that the
company has recently launched a smart application “gig go” which received the
Best Application Award for 2018 in Bahrain. This smart application enables the
insureds to get the personal line insurance services as well as the submission
of claims through their mobile phones. Apart from that, “gig go” will provide
wide array of directories of travel agents, Embassies, car dealers, hospitals
and international airports and other useful information. He also added that the company is rated as A- (Excellent) with stable
outlook by A.M. best which is the highest rating in the Kingdom of Bahrain to
be awarded to a local direct insurer, reflecting the financial strength of the
company to meet its future obligations.
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.