BKIC reports 22pc increase in H1 2019 net profit

Bahrain Kuwait Insurance Company (BKIC) yesterday reported a 22 per cent increase in its half-year 2019 net profit attributable to the shareholders to BD 2.1 million helped by a significant improvement in the underwriting profits as well as the investment net income.

The company, a subsidiary of Gulf Insurance Group (GIG), recorded BD 1.7m in net profit in the same period of 2018. Basic Earnings per share were 14 fils during the current period compared to 12 fils of the same period last year. BKIC’s H1 underwriting profits increased by 26pc to BD 1.5m, while Investment net income increased by 38pc to BD1.6m from that in the same period a year ago.

Total comprehensive income attributable to the shareholders reached BD 2m during the current period compared to BD 1.5m of the same period last year, registering an increase of 40pc. The company achieved gross premium revenue of BD 34.3m, compared to BD 35m in last year, with a slight decrease of 2pc. The net technical reserves rose from BD 29.5m at the end of the previous year to BD 31.6m at the end of the current period.

Quarterly profit

For 2019 second quarter, the company’s net profit attributable to the shareholders was BD 1.3m, compared to BD 649,000 in the year-ago quarter, an increase of 97pc. Basic Earnings per share in Q2-2019 were 9 fils compared to 5 fils in Q2-2018. The underwriting profits increased by 85pc to BD 1m, while investment net income increased by 82pc to BD 841,000 from that in the same quarter a year ago.

Total comprehensive income attributable to the shareholders reached BD 1.3m in Q2-2019 compared to BD 214,000 in Q2-2018, registering a significant increase of 498pc. Quarterly gross premium revenue was BD 16.7m, compared to BD 18.1m in the second quarter of last year, with a decrease of 8pc. BKIC board appointed Abdullah Sultan as the First Deputy Chief Executive Officer of BKIC effective 2nd May 2019.

The board also formed a Risk Committee for overseeing the overall process and strategy for Risk management in the first quarter. Ebrahim Alrayes, BKIC CEO said the company has taken necessary steps to integrate some functions with Takaful International after obtaining the necessary approval of the Central Bank of Bahrain and is investing more in the digital transformation and introducing technology in the company’s business, and hoping that the results will be better in the coming periods.