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.

 The decrease 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.

 The 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%.

The net income from investment decreased by 47%, from BD 670,000 in the 3rd quarter of last year to BD 356,000 in the 3rd quarter of this year. Earnings per share during the 3rd quarter were 5 fils compared to 8 fils in the 3rd quarter of last year.  

The 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.

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