July 28, 2011
Mr. Ebrahim Al Rayes CEO of Bahrain Kuwait Insurance Company (BKIC) announced that the company achieved net profits of BD 2.6 millions at the end of Q2 2011 as compared to BD 2.3 millions for the same period last year.( the net profit of the last three months ending in 30th June 2011 is BD. 1.5 millions as compared to one million for in the for the same period last year).
The investment income increased by 60%, from BD. 461,000 in end of Q2 2010 to BD. 739,000 for the same period this year. The technical profit decreased by 3%, from BD. 2.27 million in the end of Q2 last year to BD. 2.21, this is mainly due to the change in unearned premium reserve method of calculation, which is more accurate and reliable.
The Company also registered a higher gross premium revenue of BD 19.0 millions as of end Q2 2011 which amounted to a slight increase of 1% as compared to BD 18.8 millions for the same period in 2010. This increase is reflected in the gross earnings, which increased by nearly 2% from BD 6.5 millions in the Q2 2010 to BD 6.8 millions in the same period this year.
The technical reserves increased by 9%, from BD. 12.6 millions in end of Q2 last year to 13.7 millions for the same period this year. The return on Shareholders funds is 9.5% as of end Q2 2011 compared to 9.3% for the same period last year. The increase is much more significant, considering the fact that the shareholder's fund amount increased from 24.8 millions to 27.4 millions. Earnings per Share increased from 36 fils as of end Q2 2010 as against 40 fils as of end Q2 2011.
Mr. Al Rayes also said (during the 2nd quarter of this year) that the company opened its 5th branch in Budaiya road to service the residents of the north governorate. This is in addition to the already existing branches in Arad, Manama, Salmabad and Riffa. The objective is to ensure the easy accessibility to BKIC's services. He also mentioned that the company during this period lunched a new product for Indian community in Bahrain. This was done in cooperation with ICICI Lumbard, one of the largest insurance companies in India. Finally, Mr. Al Rayes said that the company always gets its strength from confidence of its clients and he hopes to maintain the same level of growth at year end.