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February 28, 2011
The shareholders of Bahrain Kuwait Insurance Company (BKIC) in its Annual General meeting held on Monday 28th February 2011, have approved the distribution of a cash dividend of 35% (35 fils per share). During the meeting four new Board of Directors have been elected for the coming three years i.e. Mr. Abdulla Hassan Buhindi, Mr. Murad Ali Murad, Mr. Hasan Zainalabedin and Dr. Abdul Rahman Ali Saif. Also, six directors have been appointed i.e. Mr. Khalid Sauod AL Hassan, Mr. Adnan Ahmed Al Baghli, Mr. Shawqi Ali Bin Yousif Fahkro, Mr. Esam Abdul Khaliq and Mr. Bijan Khosrowshahi representing the majority shareholder of the company (GIC), Kuwait and Mr. Emad Jawad Bu Khamseen representing Warba Insurance Company, Kuwait.
Mr. Abdulla Hassan Buhindi, the Chairman of the Board of Directors stated that in spite of more difficult and competitive market environment in Bahrain and Kuwait, BKIC achieved a net profit of BD 4.1 million ($10.9m) in 2010 compared to BD 4 million in 2009 and the company still maintains its leadership in Bahrain's market, and that the profit for 2010 has been the best ever since the company started its operations.
Mr. Buhindi also said that the company has achieved a return on shareholder's fund of 15% for the year. Shareholder's equity registered an increase of 12% from BD 24.4 million in 2009 to BD 27.4 million in 2010. The liquid funds have increased from BD 25 million in 2009 to BD 28 million in 2010. The earnings per share increased from 62 fils in 2009 to 64 fils in 2010. He also added that the Board of Directors has approved the business plan which the company formulated for three year period (2011-2013) which includes the introduction of new products and increased distribution channels and improved service quality.
Mr. Buhindi revealed that the Company has recently completed purchase of a new 11 storied building in Seef District to serve as the head office of the Company as for the present building which is located in Diplomatic area will be within the Company's investment portfolio.
Mr. Ebrahim Al Rayes The Chief Executive Officer of BKIC stated that the company has achieved an increase of 5% in the gross premium revenue from BD 31.8 million in 2009 to BD 33.4 million in 2010. This growth reflects the confidence of clients in the financial strength and good reputation of the company.
On training front during the year 2010 the company nominated employees for over 45 courses on different subjects conducted by Bahrain Institute of Banking and Finance (BIBF). 70 employees have benefited from these courses. In December 2010, 11 employees have graduated from various courses. This includes eight in Advanced Diploma in Insurance, one in Professional Insurance Certificate (PIC) and one in Certificate of Personnel Practice (CPP) and one employee qualified as Associate of Chartered Insurance Institute (ACII).
As for regards development arena, the company has introduced two new covers in Motor insurance (the Gold and the Platinum) which include additional benefits that were not part of the standard comprehensive policy.
In the year 2010, our company signed a Memorandum of Understanding (MOU) with Bank of Bahrain and Kuwait to take advantage of their large client base for marketing personal insurance such as Motor, Home, Travel, Life and Medical, etc.
We have also embarked on an ambitious reinsurance programme in cooperation with the majority shareholder of the Company (Gulf Insurance Company) and its subsidiaries with the aim of increasing retained premium and commission income. The changes were broad based in nature and included proportional and non proportional treaties across all classes of business. This arrangement is first of its kind in the region.
Mr. Al Rayes predicted that the oil prices will remain at the current high level in the short and medium terms. Consequently, the developmental process is expected to continue in the region and have a positive impact on insurance activities.