Bahrain Kuwait Insurance Company B.S.C. (trading code in Bahrain Bourse “BKIC.BH” and in Kuwait Bourse “BKIKWT”) announces its consolidated financial results for the financial year ended 31^st December 2020 as follows:

The consolidated results for the last three months ending 31^st December 2020 registered a net profit attributable to the shareholders of BD 0.73mio compared to a net loss of BD 0.03mio during the same period of the previous year. Earnings per share during the 4^th quarter was 5 fils compared to Nil in the same period of the previous year. The total comprehensive income attributable to shareholders increased by 93% from BD 0.741mio in 4^th quarter 2019 to BD 1.430mio in the same period of the current year.

The gross premium revenue decreased by 11% from BD 32.790mio in the 4^th quarter of 2019 to BD 29.250mio in the same period of the current year. The underwriting profit increased by 532%, from BD 0.144mio in 2019 to BD 0.911mio in the 4^th quarter of current year. The net investment income increased by 40%, from BD 0.143mio in the 4^th quarter of the previous year to BD 0.200mio in the 4^th quarter of the current year.

As for the consolidated financial results for the year ended 31^st December 2020, the company achieved a net profit of BD 3.81mio attributable to shareholders, compared to BD 2.70mio in the previous year, registering an increase of 41%. The Earnings per share was 27 fils compared to 19 fils in the previous year. The total comprehensive income attributable to shareholder’s increased by 13.2% to reach BD 4.29mio in 2020 compared to BD 3.79mio in 2019.

The gross premium revenue stood at BD 85.43mio, at the end of current year compared to BD 81.66mio in the previous year, recording a growth of 5%. The underwriting profit during the current year stood at BD 3.48mio, compared to BD 2.22mio in the previous year, recording an increase of 57%. The net investment income decreased by 11%, from BD 2.07mio in 2019 to BD 1.85mio in the current year.

The 41% increase in the net profit for the financial year ending 31^st December 2020 compared to the previous year is mainly due to the significant improvement in underwriting results, which is the company’s core business. Among the drivers behind this accomplishment was the endeavor to optimize client retention and build fruitful new client relations. This also coincided with prudently expanding the control of the claims cost.

The shareholder’s equity as at the end of 2020 was BD 39.6mio compared to BD 37.5mio as at the end of the previous year, registering an increase of 5.5%. The total assets by the end of 2020 reached to BD 240mio compared to BD 246mio at the end of previous year, registering a decrease of 2.5%. The net technical reserves increased by 7.5% from BD 33.48mio at the end of the previous year to BD 36mio at the end of the current year.

Commenting on the company’s results, the Board of Directors expressed their satisfaction stating, “The Board is pleased to announce the positive results for the full Financial year 2020 despite the immensely difficult circumstances of the Global Pandemic alongside the heavy burden of reducing all business and trade activities both locally and globally. The Management has clearly exceeded the expectations for 2020 and remain on track with the 3-year strategy set in late 2019 which revolves around accelerating the rate of growth and integrating robust digital services to elevate the BKIC customers’ experience and bolster value.

creation for the shareholders. We at the Board would like to express our gratitude to the Leadership team and thank each member of the workforce at the company for this record performance. Moreover, we are confident our company will continue this positive trend in 2021 and onwards”.

The Board of directors also decided to propose a distribution for the year 2020 to the Shareholders who are registered on the Record Date, as follows:

Cash dividend: 15% equivalent to 15 fils per share amounting to BD 2,136,140 (excluding the treasury shares); and

Bonus shares of 4.8951% of paid-up capital equivalent to 4.8951 shares for every 100 shares amounting to BD 700,000.

This will increase the company’s paid-up capital to BD 15,000,000 for Total Outstanding shares of 150,000,000.

This is subject to the approval of the company’s shareholders on the upcoming Annual General Meeting.

Also commenting on the performance, Dr. Abdulla Sultan, BKIC’s CEO, reemphasized that the company’s consolidated full year 2020 Financial results were in line with the budget regardless of the adverse impact of the pandemic and the challenging economic conditions. To accomplish this, the company has illustrated noticeable growth, good control on expense, an enhanced superior underwriting, conservative provisioning, sound investment returns, and markedly over 41% increase in earnings, translating into a 9.6% ROE. Another notable highlight pertains to the investment in the Takaful subsidiary as it continues to prove its value by clearing almost all the deficit in the General Participants funds. In summary, the substantial evidence of the 2020 performance showcases and solidifies BKIC’s continuous role as the leading insurance company in the Bahraini market.

Lastly, Dr. Sultan quoted “In hindsight, the company has performed extremely well in 2020 exploiting operational endeavors which focused on enhancing underwriting, productivity & efficiency, and customer service. With that in mind, I would like to seize this opportunity to thank all staff at BKIC (in Bahrain & Kuwait) and its subsidiary for the invaluable effort, dedication, and teamwork. I salute you for your commitment and loyalty which unequivocally have been instrumental in achieving the company’s objectives, especially during the unprecedented and challenging conditions of a widespread pandemic. Looking ahead into 2021, I remain confident knowing the company stands on ample ground to explore new growth ventures, achieve both its high-level and digital strategy, and affirm its leadership role in the industry”.

It is worth mentioning that Bahrain Kuwait Insurance Company (BKIC) is a subsidiary of Gulf Insurance Group (GIG) which is the largest insurance Group in Kuwait in terms of revenue, with operations in life and non-life as well as Takaful insurance. Gulf Insurance has become one of the largest insurance networks in the Middle East and North Africa with companies in Bahrain, Kuwait, Saudi Arabia, Jordan, Lebanon, Syria, Egypt, Algeria, Iraq, Emirates, and Turkey.

KIPCO – Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder, followed by the Canadian-based Fairfax Financial Holding Ltd.  

The full set of financial statements and the press release are available on the websites of Bahrain Bourse and Boursa Kuwait.