BKIC net profit increases 24%

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain Kuwait Insurance Company (BKIC) announced its consolidated financial results for the three months ended 31st March 2022.

The results presented a net profit attributable to the shareholders of BD 1.181 million compared to BD 0.950 m for the same period last year, representing an increase of 24.3%.

The increase in the net profit was mainly due to the improvement in investment income as well as some improvement in underwriting income.

Earnings per share were 8 fils compared to 6 fils for the same period last year.

The total comprehensive income attributable to the shareholders reached BD 0.857 m in Q1-2022 compared to BD 1.039 m in Q1-2021, registering a decrease of 17.5%.

The decrease was mainly due to reduced fair value gains recorded in the 1st quarter of 2022 compared to the same period in 2021.

The company achieved a 10.6% growth in gross premium revenue from BD 24.625 m in the first quarter of last year to BD 27.232 m in the 1st quarter of the current year.

The underwriting profits increased by 2.8%, from BD 0.784 m in the 1st quarter of last year to BD 0.806 m in the 1st quarter of the current year.

The net investment income increased by 39%, from BD 0.563 m in the 1st quarter of last year to BD 0.783 m in the 1st quarter of the current year.

Total shareholders’ equity at end of March 2022 is BD 39.326 m compared to BD 41.457 m at end of last year, representing a decrease of 5.1% mainly due to allocation towards proposed dividends.

The net technical reserves increased from BD 41.455 m at the end of the last year to BD 46.571 million at the end of the current period.

Upon concluding their review of the company’s results and achievements, the Board of Directors expressed their satisfaction stating: “Later through 2022, the Board intends to review the performance of the company within the current 3-year strategy ending 2022.

Henceforward, a new strategy for the years 2023-2025 will be contemplated with the usual highest scrutiny during the year.

It will be approved under the conviction and the Board’s strong belief that the company is well equipped to continue achieving an attractive ROE in the coming periods.”

Echoing the sentiment of the Board, BKIC’s CEO Dr Abdulla Sultan reiterated that the company's consolidated results in the 1st quarter of 2022 are surely gratifying.

“Achieving both top and bottom-line growth in unprecedented global conditions is a worthy accomplishment.

While witnessing improved Net Profits in all core streams of income: BKIC Bahrain, BKIC Kuwait and the Takaful International subsidiary.”

Dr Sultan also commended the improved Investment income in Q1-2022 and advocated the belief that this particular stream of income would further improve in the coming periods.