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 nine months ended 30^th September 2024.

The financial results for the third quarter of the year 2024 (Q3-2024)

The consolidated financial results for the quarter Q3-2024 presented a net profit attributable to the shareholders of BD 1.064 million compared to BD 1.183 million for the same period last year. Earnings per share during the three months of the current year were 7 fils compared to 8 fils for the same period of last year. 

It is essential to highlight that these figures are derived from the new accounting standards, IFRS 17. The decrease in results within the current quarter compared to the same period last year is mainly attributed to enhancements in the actuarial model assumptions as per the requirements of IFRS 17 followed by reductions in the discount rates applied. These adjustments have led to a one-time exceptional decrease in profit. It is crucial to emphasize that these modifications represent a more precise representation of the company's financial performance moving forward. The company remains committed to delivering accurate and transparent financial information. It may be noted that the standard IFRS 17 is new and such enhancements as allowed as per the standard improve the quality of the financial statements.

The total comprehensive income attributable to the shareholders reached BD 2.177 million for the quarter Q3-2024 compared to BD 0.856 million for the quarter Q3-2023, registering an increase of 154%. The increase was mainly due to increased fair value gains recorded in the 3rd quarter 2024 compared to the same period in 2023.

The Company achieved 3.5% growth in Insurance revenue, from BD 28.267 million in the 3^rd quarter of last year to BD 29.249 million in the 3^rd quarter of the current year. The Insurance service results decreased by 61%, from BD 1.032 million in the 3^rd quarter of last year to BD 0.404 million in the 3^rd quarter of the current year. The Total investment income increased by 3.3%, from BD 0.891 million in the 3^rd quarter of last year to BD 0.920 million in the 3^rd quarter of the current year.

The financial results for the nine months ended 30^th September 2024

The consolidated financial results for the nine-month period ended 30^th September 2024 presented a net profit attributable to the shareholders of BD 4.002 million, compared to BD 3.962 million of the same period last year, representing an increase of 1%. Earnings per share were 27 fils during the current period which remained unchanged for the same period last year. The total comprehensive income attributable to the shareholders was BD 4.420 million compared to BD 3.387 million for the same period last year, registering an increase of 30.5%.

The company achieved 7% growth in Insurance revenue of BD 85.907 million during the nine months of this year, compared to BD 80.222 million in the first nine months of last year.

The Insurance service result decreased by 13.5%, to BD 2.608 million in the nine months of this year compared to BD 3.016 million in the same period last year. The net investment income decreased by 1%, from BD 3.450 million in the nine months of last year to BD 3.415 million in the same period of this year.

The total shareholders’ equity as at the end of September 2024 is BD 44.482 million, compared to BD 44.229 million at the end of last year, reflecting 1% increase. This growth is primarily attributed to improvements in the Fair Value of investments, despite allocations towards increased shareholders’ dividends payouts. The total assets by the end of September 2024 reached BD 192.870 million compared to BD 171.471 million as at end of last year, representing an increase of 12.5%. The net Insurance contract liabilities increased from BD 62.491 million at the end of the last year to BD 63.981 million at the end of the current period, registering an increase of 2%.

Board of Directors’ Comments

While reviewing the results of the company, the Board of Directors expressed their satisfaction stating: “The Board of Directors is pleased with the results for the first nine months of 2024 as the company was able to achieve this result despite one -off provisions/expenses which will benefit the company in the future. The Board keenly monitors the significant progress made by the company in the implementation of IFRS 17 and new digital initiatives and recognizes the hard work and dedication of the Management and employees of the company.

The support and confidence reposed by BKIC’s customers and business partners and the impeccable commitment and dedication of both management and employees enables the company to produce satisfactory results and scaling newer heights year on year.

Chief Executive Officer’s Comments

BKIC’s CEO Dr. Abdulla Sultan commented that the company’s consolidated results in the first nine months of 2024 are satisfying. He commented that in spite of the adverse effects of change in actuarial assumptions the company recorded marginally increased net profit attributable to shareholders.

He commented that “We would also like to remind our shareholders that the company adopted completely new accounting standards (IFRS 17) which is a global learning process which keeps getting fine-tuned over time. Our Core business ratios have improved despite challenges with claims inflation in Medical and Motor lines of business. The Kuwait branch continues to perform well with the acceleration noticed with Projects in the Kuwaiti Market.

He further commented that AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Bahrain Kuwait Insurance Company B.S.C. (BKIC). The outlook of these ratings is stable. He added that the company has an excellent record of profitability reflecting excellent underwriting performance in Bahrain and Kuwait. He also quoted that BKIC and its subsidiary Takaful International Co. are the only local Bahraini insurance companies to be rated A-.

The Company continues to lead in the Bahraini market which enables the company to strive for new initiatives to better serve its customers.

Group Profile

Bahrain Kuwait Insurance Company (BKIC) is the leading insurance company in the Bahraini 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. 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.

The Canadian-based 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 30^th September 2024 are available on the websites of Bahrain Bourse and Boursa Kuwait.