Gulf Insurance Group posts 2023 a net profit of $69mln

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Gulf Insurance Group has posted a net profit of KD21.2 million ($69 million), or 74.73 fils per share for the financial year ended December 31, 2023 despite the challenges it had faced during the year. The challenges included non-recurring transactions such as an impairment in the value of some of the group’s investments in associate companies and a net loss resulting from the disposal of a subsidiary, for a total amount of KD19.7 million.

The Board of Directors has recommended the distribution of 37% cash dividend (37 fils per share) for the financial year ended December 31, 2023, subject to the approval of GIG’s General Assembly and other concerned regulatory authorities.

The results were prepared in accordance with the new standard of IFRS 17 (Insurance Contracts), where the group prepared the consolidated financial information for the current year and restated the comparison periods in accordance with this standard.

Insurance revenue

Insurance revenue reached KD818.3 million compared to KD764.9 million recorded for the same period last year, an increase of KD53.4 million or 7%.

Net investment income reached KD48.4 million for the year, representing an increase of 58% compared to KD30.6 million recorded for 2022.

GIG’s book value per share reached 833 fils as on December 31, 2023, compared to 806 fils at the end of December 31, 2022, with an increase of 3%.

GIG’s shareholder equity attributable to the equity holders of the Parent Company reached KD236.3 million, an increase of 3% compared to KD228.6 million at 2022 end.

Total assets came to KD1.18 billion compared to KD1.14 billion as at December 31, 2022, an increase of KD32.1 million or 2.8%.

Strength of the group

Farqad Abdullah Al-Sane Chairman of Gulf Insurance Group (GIG), said: “Our results for the current year reflect the strength of GIG as a group, its continuous growth and ability to take risks through diversifying revenue sources and our ability to preserve stakeholders’ benefits and protect their rights.

"This is also in line with our constant endeavour to provide the best insurance services to our valued customers in all markets we operate in (Egypt, Algeria, Turkey, Jordan and GCC), by adopting the necessary strategies to digitally transform our operations in digital distribution of products, digital claims services and other supporting functions and strengthen the GIG brand which focused on designing a valuable insurance ecosystem for the Mena region.”