Bahrain Kuwait Insurance Company posts $6.1mln net profit

Total comprehensive income remained at $5.3mln

  

MANAMA: Bahrain Kuwait Insurance Company (BKIC) has reported a consolidated net profit of BD2.3 million for the half year ended June 2020, compared with BD2.1m of the same period last year, representing an increase of 11 per cent.

Earnings per share were 16 fils during the current period compared to 14 fils of the same period last year.

Total comprehensive income remained at BD2m.

The company achieved 11pc growth in gross premium revenue of BD38m during the first half of this year, compared to BD34.3m in the first half of last year.

The underwriting profits increased by 15pc, from BD1.5m in the first half of last year to BD1.7m in the first half of this year.

Net investment income decreased by 31pc, from BD1.6m in the first half of last year to BD1.1m in the first half of this year due to the increase in impairment provisions which amounted to BD643,000 in the first half of the current year as against only BD75,000 for the same period last year.

The increase in the net profit for the half year in comparison to the same period last year mainly relates to the significant improvement in underwriting which is the company’s core business.

Total shareholders’ equity as end-June 2020 is BD39.1m compared to BD39.2m as end of last year, representing a decrease of 0.5pc.

The total assets by the end of June 2020 reached BD241m compared to BD246m as end of last year, representing a decrease of 2pc.

The net technical reserves rose from BD33.4m at the end of the previous year to BD36.9m at the end of the current period.

The board of directors expressed their satisfaction stating, “The board is pleased to announce the positive results for the first half of 2020 despite the pandemic circumstances along with the reduction in activities both locally and globally. The main drivers for achieving this is the support and confidence of our customers, business partners, and dedication of the management and employees. The board believes that the company will continue to achieve positive results for the coming periods.”

Also commenting on the results, BKIC chief executive Dr Abdulla Sultan 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, despite the Pandemic and low oil prices.

“This is a result of the corrective underwriting measures taken during the fourth quarter of last year and is showing its impact now. In addition, reduction of vehicles on road have also resulted to lower claims mainly during the months of April and May.

He added that the company is constantly seeking to develop the services to maintain its leadership position and managed to launch four new personal lines products during the past six months.

“BKIC continues to invest in digital transformation as part of the GIG Group Strategy and will keep innovating as the local market pioneers in this arena.”

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