BKIC posts Q3, nine-month profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain Kuwait Insurance Company yesterday posted a 4.5% increase in its third-quarter net profit attributable to the shareholders to BD 0.813 million from BD 0.778 m in the year-ago quarter.

Earnings per share remained at 5 fils. The total comprehensive income attributable to the shareholders was BD 0.262 m compared to BD 0.991 m in the year-ago quarter, registering a decrease of 74% due to a reduction in the fair value of AFS investments.

Gross premium revenue marginally dropped 0.4% to BD 18.084 m from BD 18.157 m in the same quarter last year. Underwriting profits dropped 33% to BD 0.563m from BD 0.838m in the year-ago quarter, due to strengthening reserves. Net investment income jumped 45% to BD 0.744 m from BD 0.515 m in the same quarter a year ago.

Nine-month results

Nine-month net profit attributable to the shareholders was BD 3.248 million, compared to BD 3.080 m in the same period last year, representing an increase of 5.5%.

Earnings per share were 22 fils this year compared to 21 fils in the same period last year. The increase is attributed to the significant improvement in the core underwriting business. The underwriting profits rose 18% to BD 3.024 m from BD 2.570 m in the same period a year ago.

Total comprehensive income attributable to the shareholders was BD 3.084 m compared to BD 2.959 m for the same period last year, registering an increase of 4.2%. The company achieved a 12% growth in gross premium revenue of BD 63.011 m, compared to BD 56.176 m for the same period last year.

Net investment income decreased 15% to BD 1.435 m from BD 1.688 m in the year-ago period due to no large redemption activities of investment equities as opposed to the previous year.

Commenting on the results, the Board of Directors reaffirmed their satisfaction by stating: “The Board is pleased to announce the positive results for the first three quarters of 2021. While recognizing Bahrain’s success story in overcoming the malevolent threats of the pandemic wave, we are pleased to distinguish a new milestone ahead marking life returning to a sense of normalcy.

Therefore, we at the Board are confident and uphold the strong belief that the company has adapted fittingly and is adequately positioned to achieve all targets for 2021.”

BKIC’s CEO, Dr Abdulla Sultan, affirmed that the company’s consolidated results at the end of the third quarter are encouraging even in comparison to the performance of the same period for 2020 when the circumstances revolving around the business encompassed a larger benefit from lower claims during an unprecedented pandemic shock.

One of the ramifications surrounding Covid-19, in conjunction with the Bahrain 2030 vision, has significantly affected the BKIC transformation project whereas not only has it been determined to actively promote the digital channels but to also reduce the number of company branches.

In this manner, Dr Sultan highlighted the twofold impact – ensuring smaller more dedicated and effective means of operation as well as adopting a new fresher look and feel at prime contemporary locations.