Bahrain Kuwait Insurance Company announces 11% increase in Q1 profit

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 2024 in accordance with the newly implemented accounting standard, IFRS17, which has been in effect since last year.

Net profit attributable to the shareholders of the company was BD 1.680 million compared to BD 1.514 million for the same period last year, representing an increase of 11%. Q1 Earnings per share was 11 fils compared to 10 fils for the same period last year. The total comprehensive income attributable to the shareholders of the company reached BD 1.507 m in Q1-2024 compared to BD 1.550 m in Q1- 2023, registering as a decrease of 3% primarily due to a reduction in investments fair values.

Insurance revenue increased by 1% from BD 27.020 m in the 1st quarter of last year to BD 27.341 m in the 1st quarter of the current year. The Insurance service result increased by 2%, from BD 0.978 m in the 1st quarter of last year to BD 0.998 m in the 1st quarter of the current year. The Total investment income increased by 57%, from BD 1.040 m in the 1st quarter of last year to BD 1.633 m in the 1st quarter of the current year. 

The increase in the net profit for the three months ended 31st March 2024 compared to the same period last year is mainly due to the improvement in both Insurance service results and investment income.

The equity attributable to the shareholders of the company as of 31st March 2024 is BD 41.569 m compared to BD 44.229 m at the end of last year, representing a decrease of 6%, mainly due to allocation towards shareholders’ dividends payouts. The total assets by 31st March 2024 reached BD 177.364 m compared to BD 171.471 m at the end of last year, representing an increase of 3%. The net Insurance contract liabilities increased from BD 62.491 m at the end of the last year to BD 63.813 m at the end of the current period, i.e. +2.1%.

The Board of Directors expressed their satisfaction stating: “The Board is pleased with the results for the first three months of 2024. The Board commended the efforts of the company’s management and employees, for their efforts in continuously growing the company.”

BKIC’s CEO Dr. Abdulla Sultan reiterated: “The positive results are achieved despite a clear growth trend in the frequency of Medical and Motor Claims in addition to inflation which is also increasing the severity per claim to an average much higher than seen in the recent past.”