Bahrain Kuwait Insurance Company Achieved BD 2.9 million Net Profit with 7% Growth

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 six months ended 30th June 2026.

The financial results for the three months ended 30th June 2026

 The consolidated financial results showed a net profit after tax attributable to shareholders of BD 1.154 million, compared to BD 1.089 million for the same period last year, representing a 6% increase. Earnings per share for the quarter reached 8 fils, marking an increase of 1 fils compared to the same period in 2025. The total comprehensive income attributable to the shareholders increased by 4% and reached BD 1.171 million in Q2 2026 compared to BD 1.122 million in Q2 2025.

The Company reported insurance revenue of BD 31.401 million for the second quarter of the current year, compared to BD 27.719 million in the same period last year. The insurance service result stood at BD 0.069 million in comparison to BD 1.076 million in the same period last year, impacted by an increase in claims and the Company’s continued prudent approach to strengthening reserves. Meanwhile, total investment income saw a growth of 22%, rising from BD 1.558 million in the second quarter of last year to BD 1.907 million this year.

The financial results for the six months ended 30th June 2026

The consolidated net profit after tax attributable to shareholders stood at BD 2.873 million for the half year ended 30th June 2026, compared to BD 2.685 million in the corresponding period of 2025, representing a increase of 7%. Earnings per share for the period were 19 fils, compared to 18 fils in the same period last year. Meanwhile, total comprehensive income attributable to shareholders decreased by 37%, reaching BD 1.817 million versus BD 2.892 million in the prior-year period primarily due to lower fair value movements on investments compared to last year. 

The Company recorded 37% growth in gross written premiums, reaching BD 77.321 million during the first half of the year, compared to BD 56.562 million in the same period of 2025, reflecting continued business expansion and strong market presence. Insurance revenue increased by 9% from BD 55.751 million in last year to BD 60.750 million in current year. The Insurance service results declined from BD 2.025 million in the First half of last year to BD 1.093 million in the first half of the current year primarily due to an increase in reported claims. In contrast, total investment income grew by 19%, rising to BD 3.729 million from BD 3.142 million in the same period last year.

The total shareholders’ equity as at end of June 2026 was BD 44.547 million compared to BD 46.471 million as at end of last year, representing a decrease of 4% mainly due to the allocation of shareholder dividend payouts. Total assets reached BD 355.523 million, compared to BD 246.573 million at the end of the previous year, reflecting 44% increase due to increase in Reinsurance claims recoveries. Net insurance contract liabilities increased from BD 70.297 million at year-end to BD 82.834 million at the end of the current period, representing 18% increase.

Board of Directors’ Comments

“The Board is collectively pleased with our first-half results for 2026. All evidence shows that, while executing key strategic projects, the Company is progressing in a robust, sound, and prudent manner.” The Board also emphasized that the unity between Board members and employees extends beyond corporate governance, noting that all Board members and employees proudly joined the national initiative to sign the pledge of loyalty and allegiance to His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain.

Notably, the 2026 results reflect the implementation of the Domestic Minimum Top-up Tax on 1 January 2025. Consequently, the Board advises shareholders to evaluate "Pre-Tax Profits" when conducting benchmark comparisons on performance.

Operationally, the Company maintained uninterrupted customer service and met all client demands.

This enduring success is born from a powerful synergy: the unwavering trust of BKIC customers and partners, met by the fierce dedication of our management and staff. When shared confidence unites with such passionate resolve, success ceases to be an effort—it becomes our natural state, fulfilling the highest aspirations of the Board.

Chief Executive Officer’s Comments

BKIC Chief Executive Officer, Dr. Abdulla Sultan, emphasized that the first half consolidated results are satisfactory, despite challenges from claims inflation causing an increase in medical claims frequency and severity. Additionally, the Company faced flood-related claims in its Property & Engineering segment from its Kuwait operations, where prudent reserve provisions were maintained. Conversely, strategic measures implemented within the Motor portfolio yielded highly positive results, with further performance improvements anticipated for the remainder of the year.

To maintain a conservative financial posture, the Company boosted its reserve provisioning during the quarter and increased its Expected Credit Losses (ECL) on policyholders. 

Dr. Sultan commented: "I extend my sincere gratitude to our exceptional teams at BKIC Bahrain, BKIC Kuwait, and our subsidiary. Throughout the first half of 2026, your unfaltering efforts have been our greatest strength. It is your outstanding dedication, hard work, and shared commitment that drive our vision forward and consistently turn challenges into achievements."