Bahrain Kuwait Insurance
Company B.S.C. (trading code in Bahrain Bourse “BKIC.BH” and in Boursa Kuwait
“BKIKWT”) announced its
financial results for the nine months ended 30th September 2019. The
company achieved a net profit attributable to the shareholders of BD 2.73
million, compared to BD 2.81 million in the previous year, registering a decrease
of 3%. The company also achieved underwriting
profits during the current period
of BD 2.08 million, compared to BD 1.84 million of the same period last year,
recording an increase of 13%. The gross
premium revenue declined by
1%, from BD 49.6 million to BD 48.9 million in the same period this year. The total comprehensive income attributable to the shareholders reached BD 3 million during the current period
compared to BD 1.9 million of the
same period last year, registering an increase of 57%. The net
income from investment increased by 7%, from BD 1.82 million in the first nine
months of last year to BD 1.95 million in the same period this year. The Earnings per share were 19 fils compared
to 20 fils last year.
in the net profit for the nine months ended 30th September 2019 compared
to the same period last year is mainly due to additional provisions of BD 434 thousand (one off) for VAT on unearned
premium and BD 570 thousand for the incurred but not reported losses.
total assets by the end of September 2019 reached BD 247 million compared to BD
212 million at the end of previous year, registering an increase of 17%. The
total equity as at end of September 2019 was BD 36.9 million compared to BD 36
million as at end of the previous year, increasing by 3%. The net technical reserves rose from BD 29.5 million at the end of the previous
year to BD 31.5 million at the end of the current period.
With regards to the
financial results for the three months ended 30th September 2019, the company achieved a net profit
attributable to the shareholders of BD 659 thousand compared to BD 1.12 million
during the same period of the previous year, with a decrease of 41%. The underwriting profits
in the 3rd quarter was BD 569,000, compared to BD 644,000 in the 3rd
quarter of last year, with a decrease of 12%. The gross premium revenue decreased
slightly by less than 1% from BD 14.6 million to BD 14.5 million. The total comprehensive income attributable to the shareholders reached BD 1 million in Q3-2019 compared to BD 483,000
in Q3-2018, registering an
increase of 109%.
decrease in the net profit for the three months ended 30th September
2019 compared to the same period of last year was mainly due to the increase in reserves and the increase in general and admin expenses and
additional impairment on investments.
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 nine months of the current year which
reflects the clients’ confidence in company’s services, the support of the
business partners, and dedication of the management and employees towards business
development. The Board hopes that the company continues to achieve the best
results for the coming period.”
Mr. Ebrahim Al Rayes - Chief Executive
Officer, said that the company continues to maintain its leading position in the
Bahraini insurance market in terms of Gross Premium which reflects the
confidence of our valued customers. He also added that the company is currently
developing the business of the next three years taking in consideration the
enhancement of our services by implementing a digital transformation strategy to
meet all the needs of our customers.
It is worth mentioning
that Bahrain Kuwait Insurance Company is rated as A- (Excellent) with stable
outlook by A.M. Best which is the highest rating in Bahrain to be awarded to a local direct insurer. BKIC is a subsidiary
of Gulf Insurance Group (GIG) which is the largest insurance Group in Kuwait in
terms of written and retained premiums, and 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 ended 30th September 2019 are
available on the websites of Bahrain Bourse and Boursa Kuwait.