Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse “BKIC.BH” and in Boursa Kuwait “BKIKWT”) has announced its consolidated financial results for the nine months ended 30^th September 2022.

The financial results for the three months ended 30^th September 2022

The consolidated financial results for the three months ended 30 September 2022 presented a net profit attributable to the shareholders of BD 0.846 million compared to BD 0.813 million of the same period last year, representing an increase of 4%. Earnings per share during the three months of current year were 6 fils compared to 5 fils for the same period of last year. The total comprehensive income attributable to the shareholders reached BD 0.597 million in Q3-2022 compared to BD 0.262 million in Q3-2021, registering an increase of 128%. The company achieved 2% growth in gross premium revenue from BD 18.084 million in the 3^rd quarter of last year to BD 18.468 million in the 3^rd quarter of current year. The underwriting profits decreased by 14%, to BD 0.485 million from BD 0.563 million in the 3^rd quarter of last year. The net investment income increased by 12%, from BD 0.744 million in the 3^rd quarter of last year to BD 0.833 million in the 3^rd quarter of current year.

The financial results for the nine months ended 30^th September 2022

The consolidated financial results for the nine months period ended 30^th September 2022 presented a net profit attributable to the shareholders of BD 3.501 million, compared to BD 3.248 million of the same period last year, representing an increase of 8%. Earnings per share were 23 fils during the current period compared to 22 fils of the same period last year. The total comprehensive income attributable to the shareholders was BD 1.529 million compared to BD 3.084 million for the same period last year, registering a decrease of 50.4% due to the liquidation of some investments which led to realizing gains, in addition to the reduction in fair values of other investments. The company achieved 13% growth in gross premium revenue of BD 71.178 million during the nine months of this year, compared to BD 63.011 million in the first nine months of last year. The underwriting profits decreased by 21%, to BD 2.385 million in the current period compared from BD 3.024 million in the nine months of last year, mainly as the company has further bolstered its reserves to address the impact of economic inflation. The net investment income increased by 86%, from BD 1.435 million in the first nine months of last year to BD 2.666 million in the nine months of this year. 

The increase in the net profit for the nine-month period ended 30^th September 2022 in comparison to the same period last year mainly relates to the significant improvement in net investment income, driven by company’s strategy to improve investments position, strengthening of reserves and long-term performance taking into consideration current markets challenges across the world which led to realizing investment proceeds.

The shareholders’ equity as end of September 2022 was BD 39.998 million compared to BD 41.457 million as end of last year, representing a decrease of 3.5%. The total assets as at the end of September 2022 reached BD 187.103 million compared to BD 232.363 million as at end of last year, representing a decrease of 20%. The net technical reserves increased from BD 41.455 million at the end of the previous year to BD 48.390 million at the end of the current year registering an increase of 17%.

Board of Directors’ Comment

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 2022. The Board is pleased with the continuous conservative approach in increasing the company’s technical reserves prudently, which will allow the company to surf the waves of future uncertainties. The Board is very optimistic about the trend of the year end 2022 results.”

Chief Executive Officer’s Comment

Also commenting on the results, Dr. Abdulla Sultan, BKIC’s Chief Executive Officer said, “The company's consolidated results at the end of the nine months of this year were encouraging despite our efforts to continue in prudently strengthening our reserves.

He added “We are exceptionally pleased that we obtained the Great Place to Work certified status. This is a clear indication to our solid commitment to build a great company.

Additionally, another great achievement during this quarter was the affirmation of our A- rating (Stable outlook) from AM Best”

Group Profile

It is worth mentioning that Bahrain Kuwait Insurance Company (GIG Bahrain) 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. GIG Bahrain 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, Jordan, Egypt, Turkey, Algeria, UAE, KSA, Oman, Qatar, Syria, Iraq and Lebanon.

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 30^th September 2022 are available on the websites of Bahrain Bourse and Boursa Kuwait.