BKIC net profit surges 30pc
Manama, July 27, 2014
Bahrain Kuwait Insurance Company (BKIC) has announced that net profit for the first half of the current year increased 30 per cent from BD2 million ($5.2 million) last year to BD2.6 million.
Net profit for the three months ending June 30 was BD727,000 compared with BD1.1 million for the same period last year, BKIC chairman Murad Ali Murad said.
Technical profits (core business) decreased by 19 per cent over the period under study, from BD1.6 million in 2013 to BD1.3 million in the current year, mainly due to the increase in loss ratio in motor department and also due to provision of additional reserves (BD133,000) for claims incurred but not reported, said a report in the Gulf Daily News (GDN), our sister publication.
Murad added that investment income in the first half of this year reached BD1.8 million as against BD776,000 earned in the same period last year.
This was despite provision of additional reserves amounting to BD363,000 for impairment in value of old investments.
However, the company has recorded extraordinary profits of BD1.5 million from the sale of real estate property located in the Diplomatic Area.
Furthermore, the company has taken additional reserve valued at BD100,000 towards provision for bad and doubtful debts against BD70,000 last year.
Shareholders' equity increased by three per cent, from BD33.3 million at the end of last year to BD34.3 million for the end of first half this year.
Return on shareholders' equity for the first quarter of current year was 7.7 per cent as against 6.5 per cent for the same period last year.
Earnings per share over the first half of this year reached 37 fils, as compared to 28 fils for the corresponding period last year.
Technical reserves increased by 10 per cent from BD13.5 million at the end of last year to BD14.8 million for the end of first half of this year.
BKIC chief executive Ebrahim Al Rayes said that the premium increased marginally by 11 per cent, from BD19 million for the first half of last year to BD21.2 million for the same period this year.
This increase reflects the confidence the clients have in the company as a market leader.
The company recently launched online sales through its revamped website (www.bkic.com).
This facilitates clients to buy personal insurances such as motor, travel and home through the Internet without the need of visiting the company's offices.
Al Rayes added that the company is always on the lookout for innovative solutions that enrich its customer service.
He said that BKIC was granted (A-) credit rating by A M Best.
This reflects the sound financial strength of the company which enables it to adequately meet its liabilities.
He added that he hoped that the company achieves a better result in the coming period. - TradeArabia News Service