August 7, 2012

Mr. Ebrahim Al Rayes - CEO of Bahrain Kuwait Insurance Company (BKIC) announced that the company achieved net profit of BD 1.5 million for the period ended 30th June 2012, as compared to BD 2.6 million for the same period last year. The net profit for the last three months ending in 30th June 2012 is BD 588 thousand.

Mr. Al Rayes attributed this decline to the drop in net earnings which is due to the impact of economic activity in general, increased claims especially in the motor department due to increased car accidents rate and drop in investment income during the period.

The shareholder's funds rose by 4% from BD 27.4 million in the first half of 2011 to BD 28.5 million in first half of this year. Also, the technical reserves increased by 9%, from BD 13.7 million in Q2 last year to BD 14.9 million for the same period this year. The return on Shareholders funds as of Q2 2011 was 9.5% which dropped to 5.3% in Q2 2012. Earnings per Share dropped from 37 fils in Q2 2011 to 21 fils in Q2 2012.

Mr. Al Rayes hopes that the Bahrain's economy rises from the stalemate which it faced in the recent times, especially in the construction sector and the commercial sector, represented in the movement of imports and exports, which would improve the performance of the insurance sector in general. Also, the executive management has taken adequate steps to improve the profitability of the company for the coming period.