BKIC announces Q2, H1 profits

TDT | Manama                                                 

The Daily Tribune – www.newsofbahrain.com

Bahrain Kuwait Insurance Company yesterday announced quarterly and half-yearly results for 2022, reporting profits, which the board said are “positive” thanking the management for its conservative approach that “allows the company to surf the waves of future uncertainties.”

BKIC attributed the increase in H1 profit mainly to a significant improvement in net investment income, driven by the company’s strategy to improve investments position and long-term performance taking into consideration current market challenges, which led to realizing investment proceeds.

Q2 results

The second quarter net profit attributable to the shareholders was BD 1.474 million compared to BD 1.485 m in the year-ago quarter, representing a decrease of 0.7%. Earnings per share were 10 fils same as in the 2nd quarter of last year.

The net investment income increased by 720% from BD 0.128 m to BD 1.050 m in the 2nd quarter of the current year. The total comprehensive income attributable to the shareholders reached BD 0.075 m compared to BD 1.783 m in Q2-2021, registering a decrease of 96% hurt by a significant reduction in the fair value of AFS investments in Q2-2022.

The company achieved 25.5% growth in gross premium revenue from BD 20.302 m to BD 25.478 m in the 2nd quarter of the current year. The underwriting profits decreased by 35% to BD 1.094 m from BD 1.677 m in the prior-year quarter.

H1 results

The first-half net profit attributable to the shareholders was BD 2.655 m, compared to BD 2.435 m of the same period last year, representing an increase of 9%. Earnings per share were 18 fils compared to 16 fils of the same period last year.

The net investment income increased by 165%, from BD 0.691 m to BD 1.833 million in the first half of this year. The total comprehensive income attributable to the shareholders was BD 0.932 m compared to BD 2.822 m for the same period last year, registering a decrease of 67%.

The company achieved a 17% growth in gross premium revenue of BD 52.710 m, compared to BD 44.927 m in the first half of last year. The underwriting profits decreased by 23% to BD 1.900 m in the current half from BD 2.461 m in the first half of last year, mainly attributable to the prudent strengthening of Motor Reserves and increase in Motor claims frequency.

The net technical reserves increased from BD 41.455 m at the end of the previous year to BD 48.408 m at the end of the current period. Dr Abdulla Sultan, BKIC’s Chief Executive Officer said, “The results are in line with our plans and Budgets including the expected reduction in Motor Insurance profits compared to last year, as claims frequency and severity are returning to normal pre-covid levels.

This led the company to prudently continue to strengthen its reserves. This is a sensible approach as the company is preparing for the evolution into IFRS 9 & 17. He added, “The company has started working on its next strategy cycle for 2023-2025 and the Management level meetings have already commenced.”