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.

The 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. 

The 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.

The 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.

The 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 net technical reserves increased from BD 29.5mn at the end of the previous year to BD 33.1mn at the end of the current year.

Commenting 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.

Also 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 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 Kuwait Bourse.

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