Bahrain Kuwait Insurance Company discloses its Financial Results for the Half Year ended 30th June 2024 showcasing 6% increase in Net Profit
TDT | Manama
The Daily Tribune - www.newsofbahrain.com
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 2024
The financial results for the three months ended 30th June 2024
The consolidated financial results presented a net profit attributable to the shareholders of BD 1.258 million, showing a slight decline of 0.5% compared to BD 1.264 million in the same period last year. Additionally, the earnings per share for the second quarter of the current year remained at 8 fils, in both the periods. The total comprehensive income attributable to the shareholders reached BD 0.736 million in Q2-2024 compared to BD 0.981 million in Q2-2023, registering a decrease of 25% due to reduction in fair value of investments
The Company achieved 18% growth in Insurance revenue from BD 24.813 million in the 2nd quarter of last year to BD 29.317 million in the 2nd quarter of the current year. The Insurance service results increased by 20%, from BD 1.006 million in the 2nd quarter of last year to BD 1.206 million in the 2nd quarter of the current year. The Total investment income decreased by 43%, from BD 1.519 million in the 2nd quarter of last year to BD 0.862 million in the 2nd quarter of the current year due to gain on sale of equity investments realized last year.
The financial results for the six months ended 30th June 2024
The consolidated financial results for the half-year period ended 30th June 2024 presented a net profit attributable to the shareholders of BD 2.938 million, compared to BD 2.778 million for the same period last year, representing an increase of 6%. Earnings per share were 20 fils during the current period compared to 19 fils of the same period last year. The total comprehensive income attributable to the shareholders was BD 2.243 million compared to BD 2.531 million for the same period last year, registering a decrease of 11% primarily due to a reduction in investments fair values.
Insurance revenue increased by 9% from BD 51.833 million in the first six months of last year to BD 56.658 million in the first six months of the current year. The Insurance service results increased by 11%, from BD 1.984 million in the First half of last year to BD 2.204 million in the first half of the current year. The total investment income decreased by 2%, from BD 2.558 million in the first half of last year to BD 2.495 million in the first half of the current year due to the non-recurrence of gain on sale of investments this year.
The total shareholders’ equity as at end of June 2024 was BD 42.305 million compared to BD 44.229 million as at end of last year, representing a decrease of 4% mainly due to allocation towards increased shareholders’ dividends payouts. The total assets by the end of June 2024 reached BD 182.010 million compared to BD 171.471 million as at end of last year, representing an increase of 6%. The net Insurance contract liabilities increased from BD 62.491 million at the end of the last year to BD 64.124 million at the end of the current period.
Board of Directors’ Comments
Upon concluding their review of the Company’s results and achievements, all members of the Board expressed their satisfaction: “Not only is the Board pleased with the results for the first six months of 2024, but all evidence suggests, whilst monitoring the key strategic projects, that the Company is progressing in a very solid, sound, and prudent method. The Board furthermore commends the initiatives through April promoting three Bahraini colleagues to executive management positions. The vision of enhancing the leadership team in this manner coincides with the ambitions and goals in place.”
Clearly, when aligning both the support and confidence of BKIC customers and business partners along with the conviction and valiant effort of both management and employees, the formula consistently stays geared to achieve continuous success, such whereas it inevitably pleases the Board on all fronts.
Chief Executive Officer’s Comments
Echoing the sentiment shared by the Board, BKIC’s CEO Dr. Abdulla Sultan reiterated how the Company's consolidated results in the 1st half of 2024 are not only gratifying, but they likewise reflect the strives forward in embracing innovation through the launch of BKIC’s distanced based Green Motor insurance product, available only for its online customers. Not only that, but through enhancing its ESG goals, the Company has embarked on sponsoring the first Electronic Vehicle forum in Bahrain whereas raising awareness and attracting numerous participants across the GCC has helped embrace such newly evolving product.
Dr. Sultan’s comments continued: “The Company has surfed the waves during the second quarter over the challenging circumstances through the heavy flood events in the Kingdom of Bahrain. Although the inflation-driven increase in claims severity in Medical and Motor insurance had its impact, the Company’s strategy remained conservative in its estimates and reserving which in turn has allowed for continuous sustainability within the organization. Notably, despite such challenges and largely due to the disciplined methodology adopted, the underwriting performance has improved.”
Concluding his remarks, Dr. Sultan extended his words of praise: “On this occasion I would like to thank all teams at BKIC Bahrain, BKIC Kuwait, and our subsidiary for all their efforts throughout the first half of 2024. The teams remain determined and consistently continue to demonstrate their outstanding dedication, hard-work and commitment to the Company.”
Group Profile
Bahrain Kuwait Insurance Company (BKIC) is the leading insurance company in the Bahraini market and a major player in Kuwait, with a credit rating of A- (Excellent) with stable outlook, by A.M Best which is the highest rating in Bahrain to be awarded to a local direct insurer, reflecting the financial strength of the company to meet its future obligations. GIG Bahrain is a subsidiary of Gulf Insurance Group (GIG) which is the largest insurance Group in Kuwait in terms of written and retained premiums, with operations in life and non-life as well as Takaful insurance. Gulf Insurance has become one of the largest insurance networks in the Middle East and North Africa with companies in Bahrain, Kuwait, Jordan, Egypt, Turkey, Algeria, UAE, KSA, Oman, Qatar, Syria, Iraq and Lebanon.
The Canadian-based Fairfax Financial Holding Ltd is Gulf Insurance Group’s Major and largest shareholder.
The full set of financial statements and the press release for the period ended 30th June 2024 are available on the websites of Bahrain Bourse and Boursa Kuwait.
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