Bahrain Kuwait Insurance Company (BKIC) B.S.C. (trading code in Bahrain Bourse “BKIC” and in Boursa Kuwait “BKIKWT”) announced its consolidated financial results for the three months ended 31st March 2024.

The Company wishes to emphasize that the financial results have been prepared in accordance with the newly implemented accounting standard, IFRS17, which has been in effect since last year. This adherence to the standard ensures accurate and compliant reporting of the company's financial performance.

The financial results for the three months ended 31st March 2024

The consolidated financial results presented a net profit attributable to the shareholders of the company BD 1.680 million compared to BD 1.514 m for the same period last year, representing an increase of 11%. Earnings per share for the 1st quarter of the current year was 11 fils compared to 10 fils for the same period last year. The total comprehensive income attributable to the shareholders of the company reached BD 1.507 million in Q1-2024 compared to BD 1.550 million in Q1-2023, registering as a decrease of 3% primarily due to a reduction in investments fair values.

 Insurance revenue increased by 1% from BD 27.020 million in the 1st quarter of last year to BD 27.341 million in the 1st quarter of the current year. The Insurance service result increased by 2%, from BD 0.978 million in the 1st quarter of last year to BD 0.998 million in the 1st quarter of the current year. The Total investment income increased by 57%, from BD 1.040 million in the 1st quarter of last year to BD 1.633 million in the 1st quarter of the current year.

The increase in the net profit for the three months ended 31st March 2024 compared to the same period last year is mainly due to the improvement in both Insurance service result and investment income.

The equity attributable to the shareholders of the company as at 31st March 2024 is BD 41.569 million compared to BD 44.229 million as end of last year, representing a decrease of 6%, mainly due to allocation towards shareholders’ dividends payouts. The total assets by 31st March 2024 reached BD 177.364 million compared to BD 171.471 million as end of last year, representing an increase of 3%. The net Insurance contract liabilities increased from BD 62.491 million at the end of the last year to BD 63.813 million at the end of the current period, i.e. +2.1%.

Board of Directors’ Comments

Upon concluding their review of the company’s results and achievements, the Board of Directors expressed their satisfaction stating: “The Board is pleased with the results for the first three months of 2024. The Board commended the efforts of the company’s management and employees, for their efforts in continuously growing the company.

Largely due to the support and confidence of the BKIC customers, business partners and in conjunction with the strong commitment and eager dedication of both management and employees, the results continue to demonstrate both a positive and improving trend which the board is pleased with.

Chief Executive Officer’s Comments

Echoing the sentiment of the Board, BKIC’s CEO Dr. Abdulla Sultan reiterated that “the company's consolidated results in the 1st quarter of 2024 are surely gratifying. Achieving Insurance revenue and Net Profit growth in unprecedented global political and inflationary conditions is a worthy accomplishment. In addition, witnessing improved Net Profits in both BKIC and the Takaful International subsidiary is even more rewarding. The positive results are achieved despite a clear growth trend in the frequency of Medical and Motor Claims in addition to inflation which is also increasing the severity per claim to an average much higher than seen in the recent past.”

Moreover, Dr. Sultan expressed his pride in the milestone achieved by BKIC in its digitalization journey with the launch of its online-exclusive distance-based motor insurance service which rewards customers with cashback the less they drive. He also commended the improved Investment income in Q1-2024 and advocated confidence that the company’s streams of income would further improve in the coming periods.

Group Profile

It is worth mentioning that Bahrain Kuwait Insurance Company (BKIC) is the lead insurance company in the Bahrain market and a major player in Kuwait, with a credit rating of 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, Jordan, Egypt, Turkey, Algeria, UAE, KSA, Oman, Qatar, Iraq and Lebanon.

Fairfax Financial Holding Ltd. is Gulf Insurance Group’s Major and largest shareholder.

The full set of financial statements and the press release for the period ended 31^st March 2024 are available on the websites of Bahrain Bourse and Boursa Kuwait.