Bahrain Kuwait Insurance Company net profit surges 11.2% in first quarter

Earnings per share remained at six fils during the first quarter

  

MANAMA: Bahrain Kuwait Insurance Company (BKIC) has reported a net profit attributable to shareholders of BD0.950 million for the three months ended March 31 compared with BD0.854m for the same period last year, an increase of 11.2 per cent.

BKIC announced yesterday its consolidated financial results. Earnings per share remained at six fils during the first quarter this year and in the same period last year taking into consideration the recent increase in capital.

The total comprehensive income attributable to the shareholders reached BD1.04m in Q1-2021 compared with comprehensive loss of BD0.987m in Q1-2020.

The company achieved 17.2pc growth in gross premium revenue from BD21.02m in the first quarter of last year to BD24.63m in the first quarter of the current year.

The underwriting profits increased by 32.7pc, from BD0.591m in Q1-2020 to BD0.784m in Q1-2021. The net investment income increased by 10pc, from BD0.522m in Q1-2020 to BD0.574m in Q1-2021.

The increase in the net profit for the three months ended March 31, 2021 compared with the same period last year is mainly due to the significant improvement in underwriting which is the company’s core business as well as some improvement in the net investment income.

The total shareholders’ equity by the end of March 2021 is BD38.51m compared with BD39.61m by the end of last year, a decrease of 2.8pc due to proposed dividends.

Total assets by the end of March 2021 reached BD235.38m compared with BD239.52m by end of last year, representing a decrease of 1.7pc. The net technical reserves increased from BD36m at the end of last year to BD40.61m at the end of the current period.

“Due to the support and confidence from our customers, business partners, and dedication of the management and employees, the results continue to show a positive and improving trend. The board believes that the company will continue to achieve an attractive ROE in the coming periods with the recently increased paid-up capital,” the board of directors said.

BKIC chief executive Dr Abdulla Sultan emphasised that the company’s consolidated results in the first quarter of 2021 were pleasing. “Both top-line and bottom-line growth in these unprecedented conditions is quite an achievement. The Combined Ratio also illustrates an improving trend.”

Revealing its latest developments on its Bank Assurance segment, BKIC said it has launched a first-of-its-kind ‘Insurance via instalments’ product in Bahrain, with its partner Bank of Bahrain and Kuwait (BBK). “This is merely a stepping-stone for various projects aligned as per the company’s innovation, diversification and digitalisation strategies.

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