BKIC reports Q4, full year profits, proposes dividend

Bahrain Kuwait Insurance Company yesterday announces its consolidated financial results for the financial year ended 31st December 2021. The Board of directors also proposed to distribute Cash dividend: 20% equivalent to 20 fils per share amounting to BD 2,987,569 (excluding the treasury shares).

Q4 results

The consolidated results for the last three months ending 31st December 2021 registered a net profit attributable to the shareholders of BD 0.904 mio compared to a net profit of BD 0.729 mio during the same period of the previous year, reflecting a 24% increase.

Earnings per share was 6 fils compared to 5 fils in the same period of the previous year. The total comprehensive income attributable to shareholders reduced by 32% from BD 1.325 mio in 4th quarter 2020 to BD 0.902 mio in the same period of the current year helped by favourable changes fair value of AFS bonds during 4th Quarter of 2020.

The gross premium revenue increased by 2 % from BD 29.254 mio in the 4th quarter of 2020 to BD 29.708 mio in the same period of the current year.

The underwriting profit increased by 59%, from BD 0.910 mio in 2020 to BD 1.442 mio in the 4th quarter of the current year. The net investment income increased by 68%, from BD 0.211 mio in the 4th quarter of the previous year to BD 0.354 mio in the 4th quarter of the current year.

Full-year results

As for the consolidated financial results for the year ended 31st December 2021, the company achieved a net profit of BD 4.152 mio attributable to shareholders, compared to BD 3.809 mio in the previous year, registering an increase of 9%. The Earnings per share was 28 fils compared to 25 fils in the previous year.

The total comprehensive income attributable to shareholder’s reduced by 7% to reach BD 3.986 mio in 2021 compared to BD 4.284 mio in 2020 mainly due to movement in fair value changes of AFS investments. The gross premium revenue stood at BD 92.719 mio, at the end of current year compared to BD 85.430 mio in the previous year, recording a growth of 9%.

The underwriting profit during the current year stood at BD 4.466 mio, compared to BD 3.480 mio in the previous year, recording an increase of 28%. The net investment income decreased by 6%, from BD 1.899 mio in 2020 to BD 1.789 mio in the current year mainly attributable to less sale of investment assets in the current year.

The increase in the net profit for the financial year ending 31st December 2021 compared to the previous year is mainly due to the significant improvement in underwriting results, which is the company’s core business.

Commenting on the results, the Board of Directors expressed their satisfaction: “The Board is pleased to announce the positive results for the full Financial year 2021. The Management has exceeded the expectations for 2021 and remain on track with the 3-year strategy set in late 2019 revolving around accelerating the rate of growth and retention in addition to integrating robust digital services to elevate the BKIC customers’ experience and bolstering value creation for the shareholders, despite the current difficult market conditions.”

The company’s CEO, Dr Abdulla Sultan, confirmed that BKIC’s consolidated full year 2021 Financial results were not only in line with the budgetary provisions, but he additionally emphasized that the figures hit the record by surpassing the historically highest Gross Written Premium revenue for a year.

To accomplish this feature in 2021, the company acceded to a noticeable growth, adopted good control measures on the expense, sustained an enhanced superior underwriting regimen, procured a conservative provisioning mechanism, all of which culminated into a 9% increase in earnings and subsequently a 10% return on equity. 

Looking forward into 2022, I remain confident and optimistic that the last of our 3-year strategy will witness the successful implementation of what our Board committed to back in 2019.”