AGM of BKIC approve 20pc cash dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Shareholders of Bahrain Kuwait Insurance Company, during its Annual General Meeting, approved the Board of Directors’ recommendation to distribute a cash dividend of 20pc equivalent to 20 fils per share amounting to BD 2,987,569 (excluding the treasury shares).

The event for the financial year 2021 held virtually via video conferencing on Monday, with a quorum of 85.83 per cent, also approved the rest of agenda items of the meeting. Murad Ali Murad – the Chairman stated in his report the challenging circumstances of the previous period especially the subsequent disruptions caused by renewed uncertainties with new virus variants, where the Board and Management of BKIC upheld an unwavering commitment to the objective of guiding and overseeing the creation of long-term value through implementing sound business strategies.

The focal point of the Company’s endeavours at any given time revolves around the notion of how to best serve all our esteemed customers. Murad Ali Murad mentioned that despite the continuous volatile market environment during a major part of the year, BKIC achieved a net profit attributable to the shareholders of BD 4.15 million, compared to BD 3.8 million in 2020, representing an increase of 9pc.

This coincided with a 19pc reduction in the subsidiary share of the profit attributable to its shareholders. The Earnings per share was 28 fils compared to 25 fils in the previous year. Total comprehensive income attributable to the shareholders for the year stands at BD 3.99 million compared to BD 4.28 million for 2020, showing a decrease of 7pc.

The company has also reported an increase in shareholders equity which grew by 5pc to BD 41.46 million compared to BD 39.6 million as at the end of the previous year. The main reasons behind the increase in the company’s profits compared to the year before are mainly due the 28pc increase in the company’s underwriting profit deriving from its core business.

Murad indicated that the key initiatives in the 2020-2022 strategy includes digital transformation of all the company’s business to improve custom[1]er service, as well as focusing on increasing and diversified growth levels, higher retention rates and rationalizing the expenses in the company.

The Board scrutinized its implementation to ensure the delivery of the desired initiatives is in progress and on track. Dr. Abdulla Sultan – the CEO said that despite the immense challenges in place, BKIC has performed extremely well in 2021 exploiting prolific operational endeavours which focused on enhanced underwriting, diversified distribution channels, spurred productivity & efficiency, and a prompt dedicated customer service base.

The substantial evidence enveloping the 2021 performance showcases and solidifies BKIC’s continuous role as the leading insurance company in the Bahraini and a major player in the Kuwaiti market.

As for the financial results, the company achieved a Gross Written Premium of BD 92.72 million, compared to BD 85.43 million in the previous year, recording a growth of 9pc. The Underwriting profits increased by 28pc to BD 4.47 million in 2021, compared to BD 3.48 million in 2020 due to the management’s prudent underwriting philosophy and a sensible investment regime comprised a formula for success and a positive development.