Bahrain Kuwait Insurance okays 100pc bonus shares, 25pc dividend
Manama : Shareholders of Bahrain Kuwait Insurance Company approved recommendation to distribute a cash dividend of 25 per cent (BD 1,786,539) of the paid up capital, excluding treasury shares, and a 100pc bonus shares. Subsequently, the paid up capital of the company will be increased to BD 14,300,000. While the Extraordinary General Meeting approved to increase the authorized capital from BD 10 million to BD 20 million.
The decision were taken during its Annual General Meeting for the financial year 2017, held at the Company Head office in Seef District, yesterday.
The Company at the end of the year achieved a net profit of BD 2.6 million as compared to BD 2.9 million in 2016. 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.
Murad Ali Murad – the Chairman said that in the year 2017, the company has been able to overcome the challenges and achieved the anticipated growth in premiums and maintains its leading position in the insurance market in the Kingdom of Bahrain.
During the year 2017, Bahrain Kuwait Insurance Company has been able to acquire 67.28pc in Takaful International (TIC) after buying the 22.75pc stake from Bahrain Islamic Bank and a subsequent buying of 3.6pc shares through mandatory offer which contributed to increase its total premiums from BD 42.1 million in 2016 to BD 59.5 million in 2017. The financial statements of Bahrain Kuwait Insurance Company were presented at a consolidated level at 31 December 2017 for the first time.
Ebrahim Alrayes – the CEO said that the technical profits have been affected this year due to the increase in the volume of claims.
The first quarter of 2017 witnessed some major claims in fire and general accidents department as well as in the marine department which had a significant impact on the overall increase in loss ratio. At the end of the year, technical profit amounted to BD 1.17 million as compared to BD 1.76 million in 2016. During the year, an additional provision of BD 643,000 was made by the Company towards incurred but not reported losses (IBNR). Net Investment Income decreased by 9pc from BD 1.75 million in 2016 to BD 1.6 million in 2017 due to fluctuating capital markets not only in the Kingdom of Bahrain but also across the region.
Looking ahead, Alrayes hopes that the year 2018 would be better than the year 2017 in terms of increased production and increased control of claims, which would enable the company to achieve the anticipated growth in profits.
He added that the company is currently taking advantage of the steady technological development through the digital transformation of insurance services and the creation of other electronic channels - such as the application of the smartphone - which will contribute effectively to promote sales and communication with customers.
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