BKIC News

BKIC discloses its financial results for the year ended 31st December 2021

20/02/2022

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 2021 as follows:

The financial results for the 4th quarter ending 31st December 2021

The consolidated results for the last three months ending 31st December 2021 registered a net profit attributable to the shareholders of BD 0.904 mio compared to a net profit of BD 0.729 mio during the same period of the previous year, reflecting a 24% increase. Earnings per share during the 4th quarter was 6 fils compared to 5 fils in the same period of the previous year. The total comprehensive income attributable to shareholders reduced by 32% from BD 1.325 mio in 4th quarter 2020 to BD 0.902 mio in the same period of the current year as we had favorable changes fair value of AFS bonds during 4th Quarter of 2020.

The gross premium revenue increased by 2 % from BD 29.254 mio in the 4th quarter of 2020 to BD 29.708 mio in the same period of the current year. The underwriting profit increased by 59%, from BD 0.910 mio in 2020 to BD 1.442 mio in the 4th quarter of current year. The net investment income increased by 68%, from BD 0.211 mio in the 4th quarter of the previous year to BD 0.354 mio in the 4th quarter of the current year.

The financial results for the year ended 31st December 2021

As for the consolidated financial results for the year ended 31st December 2021, the company achieved a net profit of BD 4.152 mio attributable to shareholders, compared to BD 3.809 mio in the previous year, registering an increase of 9%. The Earnings per share was 28 fils compared to 25 fils in the previous year. The total comprehensive income attributable to shareholder’s reduced by 7% to reach BD 3.986 mio in 2021 compared to BD 4.284 mio in 2020 mainly due to movement in fair value changes of AFS investments.

The gross premium revenue stood at BD 92.719 mio, at the end of current year compared to BD 85.430 mio in the previous year, recording a growth of 9%. The underwriting profit during the current year stood at BD 4.466 mio, compared to BD 3.480 mio in the previous year, recording an increase of 28%. The net investment income decreased by 6%, from BD 1.899 mio in 2020 to BD 1.789 mio in the current year mainly attributable to less sale of investment assets in the current year.

The increase in the net profit for the financial year ending 31st December 2021 compared to the previous year is mainly due to the significant improvement in underwriting results, which is the company’s core business. 

The shareholder’s equity as at the end of 2021 was BD 41.457 mio compared to BD 39.607 mio as at the end of the previous year, registering an increase of 5%. The total assets by the end of 2021 reached to BD 232.363 mio compared to BD 239.523 mio at the end of previous year, registering a decrease of 3%. The net technical reserves increased by 15% from BD 36.001 mio at the end of the previous year to BD 41.455 mio at the end of the current year. 

Commenting on the company’s results, the Board of Directors expressed their satisfaction: “The Board is pleased to announce the positive results for the full Financial year 2021. The Management has exceeded the expectations for 2021 and remain on track with the 3-year strategy set in late 2019 revolving around accelerating the rate of growth and retention in addition to integrating robust digital services to elevate the BKIC customers’ experience and bolstering value creation for the shareholders, despite the current difficult market conditions. We at the Board would like to express our gratitude to the Leadership team and thank each member of the workforce at the company for this record performance. Moreover, we are confident our company will continue this positive trend in 2022 and onwards”.

The Board of directors also decided to propose to distribute Cash dividend: 20% equivalent to 20 fils per share amounting to BD 2,987,569 (excluding the treasury shares). This is subject to the approval of the concerned regulatory authorities and the company’s shareholders on the upcoming Annual General Meeting.

The company’s CEO, Dr. Abdulla Sultan, confirmed that BKIC’s consolidated full year 2021 Financial results were not only in line with the budgetary provisions, but he additionally emphasized that the figures hit the record by surpassing the historically highest Gross Written Premium revenue for a year. To accomplish this feature in 2021, the company acceded to a noticeable growth, adopted good control measures on expense, sustained an enhanced superior underwriting regimen, procured a conservative provisioning mechanism, all of which culminated into a 9% increase in earnings and subsequently a 10% return on equity.  

Lastly, to put it in his own words, Dr. Sultan shared that: “The company has performed extremely well in 2021 exploiting prolific operational endeavors which focused on enhanced underwriting, diversified distribution channels, spurred productivity & efficiency, and a prompt dedicated customer service base.  Our subsidiary continuously enhances its value by generating larger surplus in its funds. The substantial evidence enveloping the 2021 performance showcases and solidifies BKIC’s continuous role as the leading insurance company in the Bahraini and a major player in the Kuwaiti markets. To secure such environment, the Board’s role in altering the senior employee reward mechanism towards a more performance-based with an element of deferred compensation is also commendable, to say the least.  

With that in mind, I would like to seize this opportunity to thank all staff in Bahrain, in Kuwait, and at the subsidiary for the invaluable effort, dedication, and teamwork. I humbly express my gratitude for your commitment and loyalty which unequivocally have been instrumental in achieving the company’s objectives, especially during the unprecedented challenges surrounding the Covid-19 pandemic. Looking forward into 2022, I remain confident and optimistic that the last of our 3-year strategy will witness the successful implementation of what our Board committed to back in 2019.” 

It is worth mentioning that Bahrain Kuwait Insurance Company (BKIC) is the lead insurance company in the Bahraini market rated A- (Excellent) with stable outlook, by A.M Best 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. 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 Bahrain, Kuwait, Saudi Arabia, Jordan, Egypt, United Arab Emirates, Algeria, Lebanon, Syria, Iraq, and Turkey.

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 year ended 31st December 2021 are available on the websites of Bahrain Bourse and Boursa Kuwait.