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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 31st
December 2022 as follows:
The financial results for the 4th quarter ending
31st December 2022
The consolidated results
for the last three months ending 31st 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 4th 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 4th
quarter 2021 to BD 2.032 mio in the same
period of the current year.
premium revenue increased by 11 %
from BD 29.708 mio in the 4th 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 4th quarter of the current year. The net investment income increased
by 8%, from BD 0.354 mio in the 4th quarter of the previous year to
BD 0.382 mio in the 4th quarter of the current year.
The financial results for the year ended 31st
As for the consolidated financial results for the year ended 31st
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.
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
31st 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
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 1st 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.”
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 31st December 2022 are available on the
websites of Bahrain Bourse and Boursa Kuwait.