BKIC announces BD2.6m net profit

Manama : Bahrain Kuwait Insurance Company (BKIC) announced financial results for the year ended 31 December 2017 and decided to propose 25 per cent of paid-up Capital (7,150,000) cash dividend equivalent to 25 fils per share, in addition to 100pc bonus shares as announced earlier. The board also decided to increase the authorized capital from BD10 million to BD20m. 

Net Profit for the year ended 2017 decreased by 10pc from BD2.9m in 2016 to BD2.6m in 2017. 

Technical Profit (Underwriting Profit) was BD1.5m, lower by 15pc when compared with BD1.76m in 2016. This was mainly due to the losses incurred by the subsidiary after additional provision was made towards Technical reserves in order to strengthen its financial position. 

Net income from Investment decreased by 9pc from BD1.75m in 2016 to BD1.6m in 2017, as the year 2016 was an exceptional year with non-recurring income from gain on sale of equity investments.

Earnings per share (EPS) at the end of the current year stood at 36 fils compared with 40 fils in 2016. The Return on Equity (ROE) recorded was 7.5pc compared to 8.5pc in 2016.

For the three months ended 31 December 2017, Gross Premium earnings increased to BD17.6m as compared with BD11.7m for the same period in 2016. 

Net premium income increased to BD7.9m compared to BD2.6m for the same period last year and Net Commission and fees was BD87,000 compared to BD579,000 for the same period in 2016. 

Net claims increased to BD5.8m from BD2.4m, while underwriting profit was BD12,000 compared to a loss of BD26,000 for the same period last year. Investment income decreased to BD172,000 from BD426,000 whereas the Net profit increased to BD268,000 compared to BD218,000 for the same period in 2016.

It is noteworthy to mention that Bahrain Kuwait Insurance Company now holds 67.28pc ownership of Takaful International Company (TIC). 

Ebrahim Al Rayes, Chief Executive Officer of the company said that despite the insurers face continuing headwinds in the region, the company has achieved a growth of 41pc in Gross Premium income, from BD42.1m in 2016 to BD59.5m in 2017. 

He also stated that A.M. Best after a periodic review of the company’s business, affirmed A- (Excellent)rating with a stable outlook. 

Looking ahead, he said that the company is looking forward to increase its market share in 2018, by offering new products and developing existing products and services.