BKIC shareholders approve 25 pc cash dividend

TDT | Manama                                        

The Daily Tribune – www.newsofbahrain.com   

Bahrain Kuwait Insurance Company (BKIC) has announced that shareholders have approved a cash dividend of 25% equivalent to 25 fils per share amounting to BD 3,734,461 during its Annual General Meeting.

Murad Ali Murad, the Chairman of the Board, reported on the challenges faced by the insurance business and other businesses due to the general global uncertainties in the markets.

Despite this, BKIC achieved a net profit attributable to the shareholders of BD 4,75 million, being the highest profit recorded in the history of the company compared to BD 4.15 million in 2021, recording an increase of 14%.

The major contributing factor for this performance was a 70% increase in investment income driven by the company’s strategy to reposition its investment portfolio to earn optimum returns.

Murad indicated that the new 3-year strategy encompassing 2023-2025 which was adopted in a more prudent and comprehensive manner than in previous years, entailed a potent emphasis on: Organic & Inorganic growth, optimizing return on investments (ROI), improving loss and expense ratios, establishing large and long-standing partnerships, digitalization, and Insuretech, ESG and staff; including both training and culture.

BKIC also reported an increase in shareholders’ equity, which increased by 1% to BD 42.03 million compared to BD 41.46 million as at the end of the previous year.

The company achieved the highest Gross Written Premium since its inception of BD 104.3 million, compared to BD 92.7 million in the previous year, recording a growth of 12%.

Dr. Abdulla Sultan, the CEO of BKIC, said that despite the challenges faced by the company in 2022, BKIC continued affirming its lead position in the local market and maintained its strong presence in Kuwait by achieving the historical records on growth, profitability and returns to shareholders.

Underwriting profits decreased by 15% to BD 3.81 million (BD 4.47 million in 2021), due to an increase in Loss Ratio from 68% to 74% in 2022.

The technical reserves increased by 18% from BD 41.46 million in 2021 to BD 48.94 million in 2022.

Dr. Sultan added that during the year, the Company’s corporate branding and logo has changed from “gig” to “GIG,” along with the parent, as a testimony to the growth and relevance the organization has become in all its domiciles.

Within the scope of the core system, the CEO mentioned that its successful implementation would aid a sound strategy of driving up agility, responsiveness and efficiency while enhancing the customer experience.