MANAMA: Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD794,000 for the three months ended March 2019, compared with BD1 million for the same period last year, registering a decrease of 24 per cent.
The company achieved underwriting profits of BD485,000 during the current period, compared with BD637,000 of the same period last year, recording a decrease of 24pc.
The total comprehensive income reached BD758,000 in Q1-2019 compared with BD1.2m in Q1-2018, registering a decrease of 39pc.
In the first three months, the company achieved a gross premium revenue of BD17.6m, compared with BD16.9m in the same period last year, recording a growth of 4pc.
Net investment income increased by 9pc from BD691,000 in the first three months of last year to BD752,000 in the first three months of this year. The earnings per share were six fils in Q1-2019 compared with seven fils in Q1-2018.
The decrease in the net profit for the three months ended March compared with the same period last year was mainly due to the decline in the underwriting profits resulted from the increased net claims incurred in motor department and also due to the reduction in treaty commission rates.
The total assets by the end of March 2019 reached BD210m compared with BD161m of the same period last year, registering an increase of 31pc.
Shareholders’ equity as of end of March 2019 was BD34.6m compared with BD34m as of the same period last year, increasing by 2pc.
Technical reserves rose by 7pc from BD31.5m at the end of the previous year to BD33.7m at the end of the current period.
The board of directors has expressed its satisfaction with the results.
Also commenting on the results, BKIC chief executive Ebrahim Alrayes said the company has taken the necessary measures to improve the results of motor department, and continues to enhance its services in order to maintain its leadership position in the market.
The company is investing in digital transformation, which is expected to improve results in the coming period.
He also said that within this month, the first integrated digital branch of BKIC and TIC will be opened at Seef Mall in Muharraq.
The branch will provide all insurance services both conventional and takaful.
He also said that the work was underway to integrate the other branches, which are expected to be opened before end of this year.
Mr Alrayes also mentioned that the company is the lead insurance company in Bahrain market rated by AM Best as A- (Excellent) with stable outlook which is the highest rating in Bahrain to be awarded to a local direct insurer, reflecting the financial strength of the company to meet its future obligations.
BKIC chairman Murad Ali Murad
Mr Alrayes
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