Bahrain Kuwait Insurance agrees 15pc cash dividend

TDT | Manama

Bahrain Kuwait Insurance Company’s Annual General Meeting approved to distribute a cash dividend of 15 per cent (BD 2,140,349) of the paid-up capital to shareholders, excluding treasury shares. The General Assembly held at the company’s head office in Seef District on Wednesday also approved the appointment of new board members for the financial period (2020-2022). The new members are Khalid Saoud Alhasan, Shawqi Ali Fakroo, Dr Emad Jawad Bukhamseen, Bijan Khosrowshahi, Thamer Ebrahim Arab and Mubarak Al Ayyar.

Also, the AGM approved the election of Murad Ali Murad, Hasan Mohamed Zainalabedin, Mohamed Ebrahim Zainal and Mohamed Ahmed Alrayes to the new board for the same period.

Keeping pace with tech

Outlining the challenges faced by the insurance industry during the year 2019, Murad Ali Murad said, in going forward, it is important to utilise technology in keeping pace with modern developments in the field of insurance. He further revealed that the board approved a business plan for the next three years.

On the decrease in the company’s profits, Murad Ali Murad attributed it to the extraordinary expenses/provisions during the year. These include VAT on UPR of policies issued in 2018 and in force in 2019 which were not collected from customers, compensation paid to the employees on the voluntary early retirement programme and the increase in technical reserves based on the external actuary’s recommendation report.

Meanwhile, Ebrahim Alrayes, the CEO, raised concerns on the fierce competition adversely affecting companies operating, especially in the motor and medical insurance sector. As for the financial results, the company achieved net premium revenue of BD 33.3 million, compared to BD 31.7m in the previous year, recording a growth of 5pc. The loss ratio also improved, as it decreased from 76.8pc to 73.6pc. It reflected positively in technical profits which increased by 14pc from BD 1.95 m in 2018 to BD 2.22 m in 2019. Looking ahead, Alrayes said the company places great importance to the development within the company, whether through training of individuals or through developing services and finding new products.

He said the company expects better results in going forward, despite the instability of political and economic conditions in the world in general. He added: “Besides, the company’s business plan aims towards limiting the increase in expenses. However, we must take into account the impact of the outbreak of COVID 19 in the global economy in general and Bahrain in particular.”