Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse “BKIC.BH” and in Boursa Kuwait “BKIKWT”) has announced its consolidated financial results for the half year ended 30^th June 2022.

The financial results for the three months ended 30^th June 2022

The consolidated financial results for the three months ended 30^th June 2022 presented a net profit attributable to the shareholders of BD 1.474 million compared to BD 1.485 million of the same period last year, representing a decrease of 0.7%. Earnings per share during the 2^nd quarter of current year were 10 fils same as in the 2^nd quarter of last year. The total comprehensive income attributable to the shareholders reached BD 0.075 million in Q2-2022 compared to BD 1.783 million in Q2-2021, registering a decrease of 96% due to the significant reduction in fair value of AFS investments in Q2-2022. The company achieved 25.5% growth in gross premium revenue from BD 20.302 million in the 2^nd quarter of last year to BD 25.478 million in the 2^nd quarter of current year. The underwriting profits decreased by 35%, to   BD 1.094 million from BD 1.677 million in the 2^nd quarter of last year. The net investment income increased by 720%, from BD 0.128 million in the 2^nd quarter of last year to BD 1.050 million in the 2^nd quarter of current year.

The financial results for the six months ended 30^th June 2022

The consolidated financial results for the half year period ended 30^th June 2022 presented a net profit attributable to the shareholders of BD 2.655 million, compared to BD 2.435 million of the same period last year, representing an increase of 9%. Earnings per share were 18 fils during the current period compared to 16 fils of the same period last year. The total comprehensive income attributable to the shareholders was BD 0.932 million compared to BD 2.822 million for the same period last year, registering a decrease of 67%. The company achieved 17% growth in gross premium revenue of BD 52.710 million during the first half of this year, compared to BD 44.927 million in the first half of last year. The underwriting profits decreased by 23%, to BD 1.900 million in the current half compared to BD 2.461 million in the first half of last year, mainly attributable to the prudent strengthening of Motor Reserves and increase in Motor claims frequency. The net investment income increased by 165%, from BD 0.691 million in the first half of last year to BD 1.833 million in the first half of this year.

The increase in the net profit for the half year ended 30^th June 2022 in comparison to the same period last year mainly relates to the significant improvement in net investment income, driven by company’s strategy to improve investments position and long-term performance taking into consideration current markets challenges, which led to realizing investment proceeds.

The shareholders’ equity as end of June 2022 is BD 39.401 million compared to BD 41.457 million as end of last year, representing a decrease of 5%. The total assets by the end of June 2022 reached BD 205.129 million compared to BD 232.363 million as at end of last year, representing a decrease of 12%. The net technical reserves increased from BD 41.455 million at the end of the previous year to BD 48.408 million at the end of the current period. 

Board of Directors’ Comments

Commenting on the company’s results, the Board of Directors expressed their satisfaction stating, “The Board is pleased to announce the positive results for the first half of 2022. The Board is pleased with the Management’s conservative approach in continuously increasing the company’s technical reserves prudently, which will allow the company to surf the waves of future uncertainties. During Q2-2022, the company launched its new Logo for its headquarter which is being officially used for the first time in this Press Release. The new logo was designed to reflect the strengths of the company's brand, its rich heritage and long history in providing means of reassurance and protection for all customers. This change also coincided with the policy pursued by Gulf Insurance Group and its vision of expansion and growth within the region. This is reflected in the redesign of the Group’s new logo, which is characterized by simplicity and distinctive colors while building on the company's current logo by capitalizing the letters (GIG)”.

Chief Executive Officer’s Comments

Also commenting on the results, Dr. Abdulla Sultan, BKIC’s Chief Executive Officer said, “The company's consolidated results at the end of the first half of this year were encouraging even compared to the performance in the first half of last year. The results are in lines with our plans and Budgets including the expected reduction in Motor Insurance profits compared to last year, as claims frequency and severity are returning to normal pre-covid levels. This led the company to prudently continue to strengthen its reserves. This is a sensible approach as the company is preparing for the evolution into IFRS 9 & 17.

He added “The company has started working on its next strategy cycle for 2023-2025 and the Management level meetings have already commenced. Management is now preparing to raise their recommendations to the Board during the next quarter, to finalize the key strategic objectives for the coming period.”

Group Profile

It is worth mentioning that Bahrain Kuwait Insurance Company (GIG Bahrain) is the lead insurance company in the Bahraini market rated 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.

KIPCO – Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder, followed by the Canadian-based Fairfax Financial Holding Ltd. 

The full set of financial statements and the press release for the period ended 30^th June 2022 are available on the websites of Bahrain Bourse and Boursa Kuwait.