August 4, 2016

Bahrain Kuwait Insurance Company Board approved the financial results of the company for the period ended 30 June 2016 in its meeting held on Thursday, 4 August 2016.

The Board informed that the net profit in the first half of 2016 increased by 31% to BD 2.3 million compared with BD1.76 million in the first half of 2015. Technical profit registered a growth of 10%, from BD1.34 million to BD1.47 million and investment income increased by 37%, from BD936,000 in the first half of last year to BD1.28 million in the first half of this year net of provision for impairment (BD463,000).

As regards to the results of three months ended 30 June 2016, the net profit increased by 17%,  to BD1.33 million compared to BD1.13 million in the same period last year due to the increase in net investment income from BD345,000 last year to BD953,000 in the current year. The technical profit during the period decreased from BD988,000 in the previous year to BD638,000 this year due to increased loss ratio in motor class in Kuwait.

The earnings per share at the end of the current period is 32 fills compared to 25 fills in the same period of last year. Return on equity was 7% compared with 5% in the same period last year, and net technical reserves rose from BD13.1 million at the end of the previous year to BD14 million at the end of the current period.

Mr. Ebrahim Al Rayes, Chief Executive Officer of the company said that the company has achieved 8% growth in gross premium revenue from BD19.9 million in the first half of last year to BD21.6 million in the first half of this year. This growth reflects customer confidence in the company as a leading company in Bahrain market. He added that the improved loss ratio at the end of the current period and the control on expenditure have significantly contributed to the increase in technical profit. He also said that customers now can avail insurance services at any time and at various locations in Bahrain. The customers can purchase personal line insurances or renew them through the website or through the company's branches located in Arad, Manama, Riffa and Salmabad in addition to a newly opened branch located in Saar Mall in Saar village. They can also buy their personal line products through all the branches of Bank of Bahrain and Kuwait spread across Bahrain. It is worth mentioning that Bahrain Kuwait Insurance Company is a subsidiary of Gulf Insurance Group which is owned by Kuwait Investment Projects Company and Fairfax Company.  BKIC’s credit rating is A- (Excellent) with stable outlook from A.M. Best.