'Achievement reflects growth in technical and investment profit'
KUWAIT CITY: Gulf Insurance Company (GIC) has announced net profit of KD 7.4 million ($ 26.4 million), or 40.47 fils per share for the first nine months of 2012 - an increase of 28 percent or KD 1.6 million ($ 5.8 million) over the profit reported for the same period last year.
GIC increased its shareholder equity by 10 percent or KD 6.5 million ($ 23.1 million) to bring it to KD 73 million ($ 259.4 million) as at September 30, 2012. This is compared to KD 66.5 million ($ 236.3 million) reported as at Dec 31, 2011 after the distribution of 20 percent cash dividends and 5 percent bonus shares for that financial year.
The Growth written premium grew 9 percent over the sum reported for the first nine months of the previous year, increasing KD 10 million ($ 35 million) to reach KD 113.1 million ($ 402 million).
Net value of investments and cash came to KD 149.2 million ($ 530 million) as at September 30, 2012. This represents a 10 percent increase of KD 13.3 million ($ 47 million) from the financial year ended Sept 30, 2011.
GIC's net technical reserves were raised from KD 80.2 million ($ 285 million) on Dec 31, 2011 to KD 88.2 million ($ 313 million) as at Sept 30, 2012. This increase of KD 8 million ($ 28.3 million) represents a 10 percent rise and is in the interest of supporting the company's operational activities and to protect the rights of the policy holders, thereby strengthening GIC's ability to sustain emergencies and risks that may rise in the future.
The total assets increased to KD 300.8 million ($ 1.1 billon) as at September 30, 2012. This is an increase of KD 34 million ($ 120.7 millon) or 13 percent from the financial year ended Dec 31, 2011.
Khalid Al Hassan, Gulf Insurance's MD & CEO, said: "Our results for the third quarter reflect a growth in technical and investment profit. This consolidates the company's ability to protect its assets and the equity of its shareholders. It also falls in line with our constant strive to provide the best insurance services to our clients in all market in which we have presence, supported by our strategy for regional expansion and increasing our local and regional market stake."
He added: "We have our clients to thank for these achievements, as well as the support of our shareholders, especially KIPCO -- Kuwait Projects Company (Holding) -- and Fairfax Middle East Ltd. I would also like to expression my sincere appreciation to our dedicated employees for their efforts."
Gulf Insurance Company is the largest insurance company in Kuwait in terms of written and retained premiums, with operations in both life and non-life insurance. Gulf Insurance has become one of the largest insurance networks in the Middle East and North Africa, with companies in Saudi Arabia, Jordan, Lebanon, Syria, Egypt, Iraq and Bahrain, Emirates and Kuwait. Its reported consolidated assets stand at $ 1.1 billion as at Sept 30, 2012.
KIPCO - Kuwait Projects Company - is Gulf Insurance's largest shareholder, followed by the Canadian-based Fairfax Financial Holding Ltd.
Gulf Insurance holds a Financial Strength Rating of "A-" with Stable Outlook from Standard & Poor's. A.M. Best Europe - Rating Services Limited has also assigned a financial strength rating of A- (Excellent) and issuer credit rating of "A-" to Gulf Insurance with a Stable Outlook.
© Arab Times 2012
