BKIC achieves 21pc growth in net profit
Manama : Bahrain Kuwait Insurance Company’s net profit increased by 21 per cent to BD2.64 million in the first nine months of 2016 compared with BD2.19m in the same period last year, BKIC board revealed.
Meanwhile, technical profit decreased by 10pc, from BD1.99m in 2015 to BD1.79m in 2016. This was mainly due to booking of additional reserves towards incurred but not reported claims in addition to the premium deficiency reserve as assessed by an external actuary.
Investment income increased by 70pc, from BD878,000 in 2015 to BD1.49m in the current year net of provision for impairment (BD622,000).
Regarding the results of three months ended September 30, the net profit decreased by 20pc, to BD347,000 compared to BD431,000 in the same period last year. The technical profit during the period decreased from BD658,000 in the previous year to BD314,000 this year due to booking of additional reserves as stated above. The net investment income for the current year is BD212,000 compared to negative of BD58,000 last year.
The earnings per share at the end of the current period is 37 fils compared to 31 fils in the same period of last year. Return on equity was 7.9pc compared with 6.4pc in the same period last year. Net technical reserves rose from BD13.1m at the end of the previous year to BD13.8m at the end of the current period.
BKIC CEO Ebrahim Al Rayes said the company has achieved 13pc growth in gross premium revenue from BD26.9m in the first nine months of last year to BD30.4m in the same period of this year.
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.
“Now 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,” he added, “They can also buy their personal line products through all the branches of Bank of Bahrain and Kuwait spread across Bahrain.”
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