Bahrain Kuwait Insurance Company approves 15% cash dividend and bonus shares

Despite the effects of the COVID-19 pandemic BKIC achieved an increase of 41% in net profit

  

MANAMA: Shareholders of Bahrain Kuwait Insurance Company (BKIC) have approved the distribution of cash dividend of 15 per cent equivalent to 15 fils per share amounting to BD2,136,140 (excluding treasury shares).

An announcement after the general assembly meeting held virtually via video conferencing yesterday said the distribution of bonus shares of 4.89pc, which will increase the company’s paid-up capital to BD15,000,000, was also approved.

The meeting saw a quorum of 86.81pc.

The company chairman Murad Ali Murad said in his report that despite the effects of the Covid-19 pandemic and the unprecedented impact it had on the whole world last year, BKIC achieved an increase of 41pc in net profit for 2020 at BD3.8 million, compared with BD2.7m in 2019.

This coincided with a 13pc reduction in subsidiary share of the profit attributable to BKIC shareholders (excluding profit on sale of building).

Earnings per share were 27 fils compared with 19 fils in the previous year.

Total comprehensive income attributable to shareholders increased by 13.2pc to BD4.29m in 2020 compared with BD3.79m in 2019.

The company has also reported an increase of 5.5pc in shareholders equity to BD39.6m when compared with BD37.5m as of end-2019.

The increase in the company’s profits compared with the previous year is attributable to a 57pc increase in underwriting profit, a reduction in the loss ratio from 73.6pc to 68.8pc and a reduction in motor claims during the second quarter of the year.

Mr Murad said the top priority initiatives discussed at the review session of the 2020-2022 strategy were digital transformation and ‘insurtech’.

Alongside the need for a more efficient customer service, these have climbed to the top of the list of priorities especially because of the pandemic, he added.

During 2020, the board risk management committee adhered to the company’s new risk policies and procedures to accommodate for the circumstances under Covid-19 and to properly engage within the scope of enterprise risks associated with the resulting socio-economic challenges.

Chief executive Dr Abdulla Sultan said despite the adverse effects of the economic crisis emanating from the drop in oil prices and Covid-19, BKIC reaffirmed its leadership position in the local market and enhanced the strong presence in Kuwait.

On the future outlook, Mr Sultan said the implementation of new digital distribution channels, new joint ventures/acquisitions and strategic investments, and increasing the overall volume of business are all aimed at improving BKIC’s financial acumen, strengthening the company’s BCAR, and maximising shareholder value.

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