Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse “BKIC” and in Kuwait Bourse “BKIKWT”) announces its consolidated financial results for the financial year ended 31^st December 2022 as follows:

The financial results for the 4^th quarter ending 31^st December 2022

The consolidated results for the last three months ending 31^st December 2022 registered a net profit attributable to the shareholders of BD 1.247 mio compared to a net profit of BD 0.904 mio during the same period of the previous year, reflecting a 38% increase. Earnings per share during the 4^th quarter was 8 fils compared to 6 fils in the same period of the previous year. The total comprehensive income attributable to shareholders increased by 125% from BD 0.902 mio in 4^th quarter 2021 to BD 2.032 mio in the same period of the current year.

The gross premium revenue increased by 11 % from BD 29.708 mio in the 4^th quarter of 2021 to BD 33.084 mio in the same period of the current year. The underwriting profit decreased by 1%, from BD 1.442 mio in 2021 to BD 1.426 mio in the 4^th quarter of the current year. The net investment income increased by 8%, from BD 0.354 mio in the 4^th quarter of the previous year to BD 0.382 mio in the 4^th quarter of the current year.

The financial results for the year ended 31^st December 2022

As for the consolidated financial results for the year ended 31^st December 2022, the company achieved a net profit of BD 4.748 mio attributable to shareholders, compared to BD 4.152 mio in the previous year, registering an increase of 14%. It is worth mentioning that this profit is a historical record for the company since its inception. The Earnings per share was 32 fils compared to 28 fils in the previous year. The total comprehensive income attributable to shareholder’s reduced by 11% to reach BD 3.560 mio in 2022 compared to BD 3.986 mio in 2021 mainly due to movement in fair value changes of AFS investments.

The gross premium revenue stood at BD 104.262 mio, at the end of the current year compared to BD 92.719 mio in the previous year, recording a growth of 12%. Its also worth mentioning that this is the highest Gross Premium to be recorded for a local listed Bahraini (direct) Insurance company. The underwriting profit during the current year stood at BD 3.811 mio, compared to BD 4.466 mio in the previous year, recording a decrease of 15%. The net investment income increased by 70%, from BD 1.789 mio in 2021 to BD 3.048 mio in the current year.

The increase in the net profit in 2022 in comparison to the previous 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 upcoming markets challenges which led to selling and reducing some the company’s fixed income assets to reduce the portfolio duration.

The shareholder’s equity as at the end of 2022 was BD 42.030 mio compared to BD 41.457 mio as at the end of the previous year, registering an increase of 1%. The total assets by the end of 2022 reached BD 210.024 mio compared to BD 232.263 mio at the end of previous year, registering a decrease of 10%. The net technical reserves increased by 18% from BD 41.455 mio at the end of the previous year to BD 48.940 mio at the end of the current year.

Board of Directors’ Comment

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 ended 31^st December 2022. The Management has exceeded the expectations for 2022 and have successfully fulfilled the objectives of 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 customers’ experience and bolstering value creation for the shareholders. We at the Board would like to express our gratitude to the CEO, Leadership team and thank each member of the workforce at the company for this historical record performance since the company’s inception. Moreover, we are confident our company will continue this positive trend in 2023 with the new set and approved 3-year strategy”.

The Board of directors also decided to propose to distribute Cash dividend: 25% equivalent to 25 fils per share amounting to BD 3,734,461 (Excluding the treasury shares). This is subject to the approval of the concerned regulatory authorities and the company’s shareholders at the upcoming Annual General Meeting.

Chief Executive Officer’s Comment

The company’s CEO, Dr. Abdulla Sultan, confirmed that GIG Bahrain’s consolidated full year 2022 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 local listed Bahraini (direct) Insurance company, crossing BD 100mio. This was also supported by the company achieving historical net profits since its inception. To accomplish this feature in 2022, the company acceded to a noticeable growth, adopted good control measures on expense, maintained an enhanced superior underwriting regimen, resorted to a conservative provisioning mechanism, all of which culminated into a 14% increase in earnings and subsequently a 11.3% return on equity.  

Lastly, to put it in his own words, Dr. Sultan shared that: “The company has performed extremely well in 2022 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 a larger surplus in its funds. The substantial evidence enveloping the 2022 performance showcases and solidifies our continuous role as the leading insurance company in the Bahraini and a major player in the Kuwaiti markets. To secure such an environment, the Board’s support has been exceptional and undivided, which is highly commendable, to say the least.  

There were many achievements to be proud of during the course of 2022. some of which include: record revenue and net profits, Great Place to Work award, Graduation of our 1^st Graduate Trainee Program, new partnerships with financial services, launched our digital platform with Beema, rebranded our brand logo to “GIG” along with the Group vision, and also increased our CSR & ESG initiatives.

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, looking forward into 2023, I remain confident and optimistic that our new 3-year strategy will witness a successful implementation of what our Board & team committed to, recently in December 2022.” 

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 year ended 31^st December 2022 are available on the websites of Bahrain Bourse and Boursa Kuwait.