BKIC net profit soars to $11m
Manama, February 8, 2013
Bahrain Kuwait Insurance Company's (BKIC), one of the largest insurance firms operating in the kingdom, said its net profit for 2012 rose to BD4.21 million ($11 million) compared to BD4.14 million a year ago.
Impressed with the results, the company's board has recommended a cash dividend of 30 per cent representing 30 fils for last year at its meeting yesterday, reported the Gulf Daily News, our sister publication.
BKIC chairman Abdulla Buhindi said this was the best result ever achieved in the company's history. "The net profit for the fourth quarter amounted to BD1.11 million compared to BD679,639 for the same period in the previous year," he stated.
This increase, he sai, was due to the reduction in provisions for impairment of investments made by the company during the last quarter.
Buhindi said its total assets recorded an increase from BD83.8 million in 2011 to BD88.3 million in 2012.
According to him, the shareholder's equity registered a 9 per cent growth from BD28.6 million to BD31.1 million in 2012. Liquid funds also increased from BD28.3 million in 2011 to BD31.4 million last year, he added.
The company achieved a return on shareholders' funds of 13.6 per cent in 2012 compared with 14.6 per cent the previous year.
Earnings per share have increased from 58 fils to 59 fils.
"Despite the 3 per cent decrease in the gross premium revenue due to the economic slowdown, the company has achieved an increase of 4 per cent in gross earnings from BD13.6 million to BD14.2 million," said BKIC chief executive Ebrahim Al Rayes.
"The underwriting profit declined by 6 per cent to BD3.96 million and income recorded an increase of 55 per cent to BD910,467.
"In spite of the more difficult and competitive market environment in Bahrain and Kuwait, the company was able to retain its leading position in the Bahrain market," Al Rayes added.-TradeArabia News Service