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 half year ended 30th June 2019. The company achieved a net profit attributable to the shareholders of BD 2.1 million, compared to BD 1.7 million of the same period last year, with an increase of 22%. The underwriting profits increased by 26%, from BD 1.2 million in the first half of last year to BD 1.5 million in the first half of this year. The investment net income increased by 38%, from BD 1.2 million in the first half of last year to BD 1.6 million in the first half of this year. The total comprehensive income attributable to the shareholders reached BD 2 million during the current period compared to BD 1.5 million of the same period last year, registering an increase of 40%. The company achieved gross premium revenue of BD 34.3 million, compared to BD 35 million in last year, with a slight decrease of 2%. Basic Earnings per share were 14 fils during the current period compared to 12 fils of the same period last year.

 The increase in the net profit for the half year ended 30th June 2019 in comparison to the same period last year mainly relates to the significant improvement in the underwriting profits as well as the investment net income.

 The total assets by the end of June 2019 reached BD 247 million compared to BD 212 million as end of last year, registering an increase of 17%. The total shareholders’ equity as end of June 2019 was BD 35.9 million compared to BD 36 million as end of last year, with a slight decrease of 0.3%. The net technical reserves rose from BD 29.5 million at the end of the previous year to BD 31.6 million at the end of the current period.

 With regards to the consolidated financial results for the three months ended 30th June 2019, the company achieved a net profit attributable to the shareholders during the second quarter of BD 1.3 million, compared to BD 649,000 during the second quarter of the previous year, with an increase of 97%. The underwriting profits increased by 85%, from BD 553,000 in the second quarter of last year to BD 1 million in the second quarter of this year. The investment net income increased by 82%, from BD 463,000 in the second quarter of last year to BD 841,000 in the second quarter of this year. The total comprehensive income attributable to the shareholders reached BD 1.3 million in Q2-2019 compared to BD 214,000 in Q2-2018, registering a significant increase of 498%. The company achieved gross premium revenue of BD 16.7 million during the second quarter of 2019, compared to BD 18.1 million in the second quarter of last year, with a decrease of 8%. Basic Earnings per share in Q2-2019 were 9 fils compared to 5 fils in Q2-2018.   

The increase in the net profit for the second quarter ended 30th June 2019 in comparison to the second quarter of last year mainly relates to the significant improvement in the underwriting profits as well as the investment net income.

 Commenting on the company’s results, the Board of Directors expressed their satisfaction stating, “The Board is pleased to announce the positive results for the first half 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.”

 The BoD is pleased to announce the appointment of Mr. Abdullah Sultan as the First Deputy Chief Executive Officer of BKIC effective 2nd May 2019. Considering the importance of Risk management of the company, a new committee called Board Risk Committee was formed during the first quarter of the year. Risk management department is directly reporting to the Board Risk Committee, which is responsible for overseeing the overall process and strategy for Risk management.

 Also commenting on the results, Mr. Ebrahim Alrayes, BKIC’s CEO said that the company's consolidated results at the end of the first half of this year were encouraging compared to the performance in the first quarter of this year. He added that the Executive Management have taken the necessary steps to integrate some functions with Takaful International after obtaining the necessary approval of the Central Bank of Bahrain. Mr. Alrayes also mentioned that BKIC 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. The company is constantly seeking to develop the services to maintain its competitive position in the market by investing more in the digital transformation and introducing technology in the company’s business, and hoping that the results will be better in the coming periods.

 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 for the period are available on the websites of Bahrain Bourse and Boursa Kuwait.

 

 

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