Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse
“BKIC.BH” and in Kuwait Bourse “BKIKWT”) announces its consolidated financial results for the
financial year ended 31st December 2019 as follows:
The results for the last three months
ending 31st December 2019 registered a net loss of BD 31,000
compared to a profit of BD 342,000 during the same period of the previous year.
Earnings per share during the 4th quarter was nil compared to 2 fils
in the same period of the previous year. The total comprehensive income decreased by 10% from BD 819,000 in 4th
quarter 2018 to BD 741,000 in the same period of the current year. The gross premium revenue increased by 2% from BD 32mn in the 4th
quarter of 2018 to BD 32.8mn in the
same period of the current year. The underwriting profit increased by 29%, from BD 112,000 to BD 144,000 in
the 4th quarter of current year. The net investment income decreased by 21%, from BD
181,000 in the 4th quarter of the previous year to BD 143,000 in the
4th quarter of the current year.
decrease in the net profit for the last three months ending 31st
December 2019 compared to the same period of last year is mainly due to the
extraordinary expenses as and also due to the decrease in investment income.
financial results (consolidated) for the year ended 31st December, the
company achieved a net profit of BD 2.701mn attributable to shareholders,
compared to BD 3.155mn in the previous year, registering a decrease of 14%. The
Earnings per share was 19 fils compared to 22 fils in the previous year. The
total comprehensive income increased by 35% to reach BD 3.9mn in 2019 compared
to BD 2.9mn in 2018. The gross premium revenue stands at BD 81.7mn, at the end of current year compared to BD 81.6mn
in the previous year. The underwriting profit
during the current year stands at BD 2.2mn, compared to BD 1.9mn in the
previous year, recording an increase of 16%. The net investment income increased by 3%, from BD
2.01mn in 2018 to BD 2.07mn in the current year.
reduction in the net profit for the year ended 31st December 2019
compared to previous year was mainly due to the extraordinary
expenses of VAT on UPR for
the policies written before VAT implementation and voluntary
retirement program expenses incurred during the year amounting to BD 633,000.
total assets by the end of 2019 reached to BD 246mn compared to BD 212mn at the
end of previous year, registering an increase of 16%. The shareholder’s equity
as at the end of 2019 was BD 38mn compared to BD 36mn as at the end of the previous year, registering an increase of 6%. The
reserves increased from BD 29.5mn at the end of the previous year to BD 33.1mn
at the end of the current year.
on the company’s results, the Board of Directors expressed their complete
satisfaction with the performance of the company during the fiscal year ending
31st December 2019 as it achieved a growth in net premium income,
reduction in loss ratio and increase in investment income. However, the
extraordinary expenses incurred by the company during the year had a negative
impact on the targeted results.
The Board of directors also decided to propose a
distribution of cash dividend for the year
2019 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.
commenting on the results, the CEO, Mr. Ebrahim Alrayes said that “BKIC” is the
leading insurance company in Bahrain market and continues to enhance its
services by introducing new products and developing the existing products in
order to maintain its leadership position, at the same time he stressed the importance of using technology in the
company’s business to keep abreast of the latest development in the insurance
world. 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
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
full set of financial statements and the press release are available on the
websites of Bahrain Bourse and Kuwait Bourse.