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February 3, 2012
Mr. Abdulla Buhindi Chairman of Bahrain Kuwait Insurance Company (BKIC) announced that the Board of Directors in its meeting held on Thursday, 2nd February 2012 has proposed a cash dividend of 25% (25 fils per share) and 10% bonus shares to the shareholders subject to the approval at the Annual General Meeting. He also stated that BKIC has achieved a net profit of BD 4,149,052 for the year ended 31st December 2011 as compared to 4,137,764 in 2010. Mr. Buhindi added that the company still maintains its leadership in the Bahraini Market.
Mr. Buhindi also said that the total assets have recorded an increase from BD 81.7 Million in 2010 to BD 83.8 Million in 2011. Shareholder's equity registered an increase of 5% from BD 27.3 Million in 2010 to BD 28.6 Million in 2011. The liquid funds have also increased from BD 28 Million in 2010 to BD 28.3 Million in 2011. The Company has achieved a return on shareholders funds of 14.5% for the year. Book value per share has increased from 421 fils as on 31 December 2010 to 440 fils as on 31 December 2011.
It should be noted that the net profit of the three months period ended 31 December 2011 amounted to BD 679,639, as compared to BD 806,534 for the same period in the previous year. This decline is due to the additional provisions for impairment of investments made by the company during the last quarter.
Mr. Ebrahim Al Rayes The Chief Executive Officer of BKIC stated that the company has achieved an increase of 9% in the gross premium revenue from BD 33.4 Million in 2010 to BD 36.3 Million in 2011. The underwriting profit increased to BD 4.2 Million in 2011 as compared with BD 3.9 Million in 2010. Investment income recorded a decrease of about 25% from BD 781,000 in the year 2010 to BD 587,000 in 2011.
Mr. Al Rayes said that he was very pleased with these results, in spite of the more difficult and competitive market environment in Bahrain and Kuwait. He also added that the company, during the year introduced new products and increased distribution channels and improved service quality to fulfill its objectives and retain its current position in the market.