BKIC net profit grows by 31 per cent

Manama : Bahrain Kuwait Insurance Company yesterday announced that its net profit for the first half of 2016 jumped 31 per cent to BD2.3 million from BD1.76m in the first half of 2015. 

Technical profit registered a growth of 10pc, from BD1.34m to BD1.47m. Investment income surged by 37pc, from BD936,000 in the first half of last year to BD1.28m in the first half of this year. Net of provision for impairment (BD463,000). 

For the three months ended 30 June 2016, net profit increased by 17pc to BD1.33m from BD1.13m in the same period last year. This was mainly due to the increase in net investment income from BD345,000 last year to BD953,000 in the current year. Technical profit dropped from BD988,000 in the previous year to BD638,000 this year hurt by  increased loss ratio in motor class in Kuwait.

The earnings per share at the end of the current period is 32 fills compared to 25 fills in the same period of last year. Return on equity was 7pc compared with 5pc in the same period last year, and net technical reserves rose from BD13.1m at the end of the previous year to BD14m at the end of the current period.

Ebrahim Al Rayes, Chief Executive Officer of the company said that the company has achieved 8pc growth in gross premium revenue from BD19.9m in the first half of last year to BD21.6m in the first half of this year. He added that the improved loss ratio at the end of the current period and the control on expenditure have significantly contributed to the increase in technical profit. 

He also said that customers can now purchase personal line insurances or renew them through the website or through the company’s branches located in Arad, Manama, Riffa and Salmabad in addition to a newly opened branch located in Saar Mall in Saar village. They can also buy their personal line products through all the branches of Bank of Bahrain and Kuwait spread across Bahrain.