Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse “BKIC.BH” and in Boursa Kuwait “BKIKWT”) announces its consolidated financial results for the three months ended 31st March 2019. The company achieved a net profit attributable to the shareholders of BD 794 thousands, compared to BD 1 million of the same period last year, registering a decrease of 24%. The company also achieved underwriting profits of BD 485 thousands during the current period, compared to BD 637 thousands of the same period last year, recording a decrease of 24%. The total comprehensive income attributable to the shareholders reached BD 758 thousands in Q1-2019 compared to BD 1.2 million in Q1-2018, registering a decrease of 39%. In the first three months, the company achieved a gross premium revenue of BD 17.6 million, compared to BD 16.9 million in the same period last year, recording a growth of 4%. The net investment net income increased by 9%, from BD 691 thousands in the first three months of last year to BD 752 thousands in the first three months of this year. The earnings per share were 6 fils in Q1-2019 compared to 7 fils in Q1-2018.

 The decrease in the net profit for the three months ended 31st March 2019 compared to the same period last year was mainly due to the decline in the underwriting profits resulted from the increased net claims incurred in Motor department and also due to the reduction in treaty commission rates.

 The total assets by the end of 31st March 2019 reached BD 210 million compared to BD 161 million of the same period last year, registering an increase of 31%. The shareholders’ equity as at end of 31st March 2019 was BD 34.6 million compared to BD 34 million as of the same period last year, increasing by 2%. The technical reserves rose by 7% from BD 31.5 million at the end of the previous year to BD 33.7 million at the end of the current period.

Commenting on the company’s results, the Board of Directors expressed their satisfaction stating, “The Board is pleased to announce the results for the three months of 2019. It is due to the support and confidence from our customers in the company, support of our business partners, and dedication of the management and employees. The Board hopes that the company continues to achieve the best results for the coming periods.”

 Also commenting on the results, Mr. Ebrahim Alrayes, BKIC’s CEO said that the company has taken the necessary measures to improve the results of motor department, and continues to enhance its services in order to maintain its leadership position in the market. While stressing the importance of introducing technology in the company’s business by investing in digital transformation, we are expecting that the results would be better in the coming periods. He also added that during this month, the company will open its first integrated digital branch of BKIC and TIC at Seef Mall in Muharraq governorate to provide all insurance services both conventional and takaful. He also stated that the work is under progress to integrate the other branches, which are expected to be opened before end of this year. He has also mentioned that the company is the lead insurance company in Bahrain market rated by A.M Best as A- (Excellent) with stable outlook which is the highest rating in 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.

 KIPCO – Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder, followed by the Canadian-based Fairfax Financial Holding Ltd.  

 The full set of financial statements and the press release are available on the websites of Bahrain Bourse and Boursa Kuwait.

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