Bahrain Kuwait Insurance Company discloses financial results for Year Ended 31 December 2025

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain Kuwait Insurance Company (BKIC) B.S.C. (trading code in Bahrain Bourse “BKIC” and in Boursa Kuwait “BKIKWT”) announced its consolidated financial results for the year ended 31 December 2025.

The financial results for the three months ended 31st December 2025

The consolidated financial results for the fourth quarter of 2025 reported a net profit attributable to shareholders of BD 0.922 million compared to BD 1.167 million for the same period last year, representing a decrease of 21%. It is worth noting that this is the first year of implementing the Domestic Minimum Top-up Tax (DMTT), which has impacted profitability.

Earnings per share for the three-month period were 6 fils compared to 8 fils for the same period last year. Total comprehensive income attributable to shareholders reached BD 1.046 million in the fourth quarter of 2025 compared to BD 0.418 million in the fourth quarter of 2024, representing an increase of 150%.

Insurance revenue increased by 10%, rising from BD 28.276 million in the fourth quarter of last year to BD 31.207 million in the fourth quarter of the current year. Insurance service results increased significantly by 142%, from BD 0.285 million in the fourth quarter of last year to BD 0.689 million in the fourth quarter of the current year. Total investment income decreased by 27%, from BD 1.429 million in the fourth quarter of last year to BD 1.037 million in the fourth quarter of the current year, mainly due to a one-off gain related to the sale of property recorded in the previous year.

The financial results for the year ended 31st December 2025

The consolidated financial results for the year ended 31 December 2025 reported a net profit attributable to shareholders of BD 4.753 million, compared to BD 5.169 million for the same period last year, representing a decrease of 8%, mainly due to the first-time implementation of the new 15% Domestic Minimum Top-up Tax. Excluding the impact of this tax, profit attributable to shareholders before tax increased by 1% compared to the same period last year. Earnings per share stood at 32 fils for the current period, compared to 35 fils last year. Total comprehensive income attributable to shareholders amounted to BD 5.527 million, compared to BD 4.838 million for the same period last year, representing an increase of 14%.

The Company achieved a 3% growth in insurance revenue, reaching BD 117.309 million compared to BD 114.183 million in the previous year. Insurance service results increased by 18%, reaching BD 3.422 million compared to BD 2.893 million in the previous year. Net investment income increased by 13%, from BD 4.844 million in the previous year to BD 5.473 million in the current year.

Total shareholders’ equity as at the end of December 2025 stood at BD 46.471 million, compared to BD 44.901 million at the end of the previous year, representing an increase of 3%. Total assets as at the end of December 2025 reached BD 246.573 million, compared to BD 186.017 million at the end of the previous year, representing an increase of 33% due to increase in claims which are reinsured. Net insurance contract liabilities increased from BD 64.433 million at the end of the previous year to BD 70.297 million at the end of the current year, representing an increase of 9%.

Board of Directors’ Comments:

The Board of Directors expressed satisfaction with the 2025 results, noting the Company’s resilience against claims inflation and the new 15% DMTT regulation. “Despite these hurdles, we achieved a solid 11.4% ROE and 32 fils earnings per share. Our strong free cash flows reflect effective capital use and ensures dividend sustainability. We thank our employees for their hard work and are encouraged by the initial milestones of our 'Customer 1st' (C1) strategy.”

Customer satisfaction remains a top priority. The support and confidence extended by partners and customers drive the Company toward excellence, while the relentless commitment of Management and staff enables the organization to reach new heights annually.

To ensure long-term sustainability and robust succession planning, the Company strengthened leadership through key appointments at the Top and Middle Management levels this year. Furthermore, strategic measures were implemented to bolster risk management frameworks and cybersecurity resilience.

The year 2025 marked BKIC’s 50-year anniversary, celebrated through a commemorative event and the launch of a special publication reflecting the Company’s legacy and evolution since its founding in 1975.

Following the Board’s directive, a proposal has been submitted to distribute a cash dividend of 25%, equivalent to 25 fils per share and totaling BD 3,683,591 (excluding the treasury shares). This recommendation remains subject to the approval from the relevant regulatory authorities and shareholders at the upcoming Annual General Meeting.

Looking ahead, the strategic focus remains anchored on the “Customer 1st” (C1) 2025–2027 strategy. This vision is supported by sustained investment in technology, data governance, and process efficiency to boost operational resilience and decision-making. Enhanced data analytics will continue to drive deeper customer insights, improved retention, and disciplined underwriting, while an expanded digital presence will further elevate engagement levels.

Chief Executive Officer’s Comments:

Dr. Abdulla Sultan confirmed that BKIC’s consolidated full year 2025 financial results aligned with the annual budgetary plans. While the newly introduced 15% Domestic Minimum Top-up Tax (DMTT) paid for the first time in 2025 had the most significant impact on net profit compared to the prior year, growth across various operating entities remained consistent with the corporate strategy. This performance reflects a disciplined approach characterized by cautious underwriting, conservative technical reserve provisioning, and continuous actuarial monitoring. Furthermore, reinsurance structures were enhanced by optimizing retention ratios and expanding capacity in target growth segments

In 2025, the Company faced significant motor claims inflation in Bahrain, mirroring broader market trends. To address this, Management is consistently reviewing rate adequacy across all products and distribution channels, negotiating repair costs with third parties, and refining segmentation to prioritize preferred risk categories. Conversely, the Medical insurance portfolio showed marked improvement following the successful implementation of corrective measures. Although large fire-related claims in Bahrain and Kuwait required specific provisioning in 2025, pre-tax net profits improved, supported by a healthy Return on Equity (ROE) of 11.4%.

Lastly, to put it in his own words, Dr. Sultan commented: “The Company demonstrated significant resilience in 2025 by leveraging sound operational strategies focused on enhanced underwriting, diversified distribution channels, and increased productivity. Our value was further enhanced through the Company’s subsidiary, which generated a larger surplus in its funds. The results of 2025 solidify the Company's standing as the leading insurer in Bahrain and a major player in the Kuwaiti market. This performance, without a doubt, is underpinned by the exceptional and unfaltering support of the Board of Directors and the regulatory bodies in Bahrain and Kuwait.

“Our momentum this year was fueled by a series of defining achievements that honor our past while securing our future. We deepened our roots by increasing our shareholding in Takaful International Company and paused to celebrate our 50th anniversary a golden milestone reflecting five decades of evolution and the enduring trust of those we serve. Our digital transformation journey reached new heights as we embraced cloud-based solutions, weaving innovation into the very fabric of our operations to better serve our modern world.

“We also moved with purpose to fortify our leadership and governance, expanding our horizons through strategic partnerships that spark innovation. We take immense pride in maintaining our Great Place to Work certification for the fourth year running; it is a testament to our belief that our culture is our greatest strength. These milestones, anchored by our A- financial strength rating, are the visible markers of a disciplined journey. Together, we are not just executing a strategy; we are fulfilling a promise to deliver sustainable value to our customers, our shareholders, and the communities we call home.

“In closing, I extend my deepest gratitude to our staff in Bahrain, Kuwait, and across our subsidiary. It is your invaluable dedication and collective spirit that have turned our ambitions into achievements. Your loyalty remains the bedrock upon which our success is built.

“Looking toward 2026, I am filled with confidence that the seeds we have planted through our "Customer 1st" (C1) strategy will truly begin to flourish. This coming year represents more than just a new chapter; it is the moment where our significant investments in technology and innovation will bear fruit, translating into an elevated experience for our customers and enduring value for our shareholders. We move forward with a shared vision, ready to embrace the opportunities of the future.”