Bahrain Kuwait Insurance Compan net profit surges 18.1%

Total comprehensive income reached $2.62mln in the third quarter this year

  

MANAMA: Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD0.778 million for the three months to end-September 2020, an increase of 18.1 per cent when compared with BD0.659m for the same period last year.

Earnings per share during the third quarter were 5 fils, same as the third quarter last year.

Total comprehensive income reached BD0.991m in the third quarter this year compared with BD1.01m, in the same period last year, registering a decrease of 1.8pc.

The company achieved 25pc growth in gross premium revenue from BD14.6m in the third quarter last year to BD18.2m in the same period of the current year.

Over the same period, the underwriting profits increased by 47.3pc from BD0.569m last year to BD0.838m in the current year and net investment income increased by 64.1pc from BD0.335m last year to BD0.550m in the current year.

For the nine months ended September 30, 2020, the company achieved a net profit of BD3.1m, compared with BD2.7m for the same period last year, representing an increase of 13pc.

Earnings per share were 22 fils during the current period compared with 19 fils in the same period last year.

Total comprehensive income reached BD2.96m during the nine months, compared with BD3.05m in the same period last year, registering a decrease of 3pc.

The company achieved 15pc growth in gross premium revenue from BD48.9m last year to BD56.2m of the same period this year.

The underwriting profits increased by 24pc, from BD2.1m in nine months to BD2.6m in the same period this year.

Net investment income declined by 15pc from BD1.9m in the first half last year to BD1.6m in the first half this year due to the increase in impairment provisions which amounted to BD0.784m in the current year as against BD0.274m for the same period last year.

The increase in the net profit for the nine months compared with the same period last year is mainly due to the significant improvement in underwriting which is the company’s core business.

Total shareholders’ equity as of end-September 2020 is BD40m compared with BD39.2m as of end-2019, representing an increase of 2pc.

Total assets by end-September 2020 reached BD223m compared with BD246m as of end-2019, representing a decrease of 9.3pc.

Net technical reserves increased from BD33.4m as of end-2019 to BD36.9m as of end-September this year.

The board of directors stated, “During these unprecedented times, we are very pleased with the way the management is overcoming the recent challenges the world is facing today. This reflects the resilience and mobility adopted in the company’s operations. The pandemic has transformed the manner in which BKIC offers its services and supports its clients. However, it continuously accelerates towards positive digital means of service in the most convenient manner. This has and will continue to uplift our customers’ experience, and we are confident the company will continue to achieve positive results for the foreseeable future.”

BKIC chief executive Dr Abdulla Sultan emphasised the company’s consolidated results in the third quarter were pleasing, despite the impact of the pandemic and the low oil prices.

“Effectively, BKIC continues to be the leading insurance company in the Bahraini market, and the sustainable growth illustrated year to date solidifies this position. “Moreover, since the core underwriting business results have outperformed previous periods, and the investment portfolio results have improved from earlier this year, all signs point towards the type of sustainability in line with the plan.

“The management continuously seeks to diversify the company’s income and revenue whenever a suitable opportunity were to arise. The investment in the Takaful subsidiary has proved to be valuable and continues to illustrate a positive impact on the financials, service offerings and our brand which has also promoted our competitive edge.”

Dr Sultan said that BKIC is progressing well in its high-level strategy. The company’s digital transformation plan is rapidly progressing, highlighting its role as a pioneer of innovation in this area.

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