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November 6, 2012
Mr. Ebrahim Al Rayes CEO of Bahrain Kuwait Insurance Company (BKIC) announced that despite the slow wheel of development in Bahrain, the company was able to achieve a net profit of BD 3.1 million at the end of Q3-2012, compared with BD 3.47 million in the same period of 2011. It should be noted that the net profit of the three months period ended 30 September 2012 has increased by 86% from BD 858,000 for the year 2011 to BD 1,6 million for the year 2012.
The investment income at the end of Q3-2012 increased by 14%, reaching BD 922,000 compared with BD 807,000 in the same period of last year. The Underwriting profits declined by 18%, from BD 3.2 million at the end of Q3-2011 to BD 2.6 million for the same period of this year due to the increase in the amount of claims, especially in Motor department.
The gross premiums dropped by 6%, reaching BD 25.8 million at the end of Q3-2012 compared with BD 27.5 million in the same period of 2011, due to decreased premiums in the construction sector in Bahrain and Kuwait.
The technical reserves rose by 6%, from BD 13.5 million at the end of the financial year 2011 to BD 14.2 million at the end of the nine month period of this year. Shareholders' equity rose by 5%, from BD 28.6 million for the Q3-2011 to BD 29.9 million for the Q3-2012. The return on Shareholders funds stood at 10.4% as of Q3 2012 compared with 12.4% as of the same period of last year. It is worth mentioning that the company's Paid-up Capital has increased during 2012 to BD 7,150,000 compared with BD 6,500,000 in the last year.
Mr. Al Rayes concluded that BKIC still occupies the leading position in the Bahraini market, and is expected that Bahraini economy will exceed the exceptional circumstances experienced and achieve higher growth rates, where the Kingdom is going to implement many development and infrastructure projects that will benefit the insurance sector.