BKIC posts BD2.8 million H1 profit

TDT | Manama                                                

The Daily Tribune – www.newsofbahrain.com     

Bahrain Kuwait Insurance Company (BKIC) announced profits for its second quarter and half year 2023, which the company said was impacted by changes in accounting standards.

Q2 results

BKIC’s second quarter net profit attributable to the shareholders was BD 1.264 million compared to BD 2.198m for the same period last year.

While this represents a decrease of 42% compared to the same period last year, BKIC said it is important to note that these figures are based on the new accounting standards, IFRS17.

Specifically, the change in the discounting rate in 2022, when reinstating the financials, resulted in a onetime exceptional increase in profit for that period in 2022 reinstated results.

Earnings per share was 9 fils compared to 15 fils for the same period last year.

Total comprehensive income attributable to the shareholders reached BD 0.981m compared to BD 0.797m in Q2-2022, registering an increase of 23%.

The increase was mainly due to increasing fair value gains recorded in 2nd quarter 2023 compared to the same period in 2022.

The Company achieved 0.3% growth in Insurance revenue from BD 24.739m in the 2nd quarter of last year to BD 24.813m in the 2nd quarter of the current year.

The Insurance service results decreased by 56%, from BD 2.270m in the 2nd quarter of last year to BD 1.006m in the 2nd quarter of the current year.

The Total investment income increased by 46%, from BD 1.050m in the 2nd quarter of last year to BD 1.538m in the 2nd quarter of the current year.

H1 results

Half yearly net profit attributable to the shareholders was BD 2.778m, compared to BD 3.556m of the same period last year, representing a decrease of 22%.

Earnings per share were 19 fils compared to 24 fils of the same period last year.

The total comprehensive income attributable to the shareholders was BD 2.531m compared to BD 1.826m for the same period last year, registering an increase of 39%.

The Company achieved 1% growth in gross written premium of BD 53.426m during the first half of this year, compared to BD 52.710m in the first half of last year.

The Insurance service result decreased by 32%, to BD 1.984m in the current half compared to BD 2.921m in the first half of last year.

The net investment income increased by 41%, from BD 1.833m in the first half of last year to BD 2.593m in the first half of this year.

Despite growth in sales and significant improvement in investments performance, the company’s net profit has declined compared to the previous year.

To reiterate, this decline is primarily due to the change of IFRS17 discounting rate in 2022 when reinstating the financials, which resulted in a one-time increase in profit for that period in 2022.

Dr Abdulla Sultan, CEO, said, “With the current interest rates, the Investment team has been generating exceptional returns and has managed to lock-in these yields for the coming years.

This has allowed us to strengthen our provisioning and balance sheet to an exceptional level.” Dr Sultan advocated the confidence that the company’s streams of income would further improve in the coming periods.