The Bahrain Kuwait Insurance Company (BKIC) achieved a net profit of BD917,000 ($2.4 million) in the first quarter of the year compared with BD1.1 million for the same period last year.

Chief executive Ebrahim Al Rayes attributed this decline to the drop in the results of the motor department due to increased car accidents rate as compared to the same period last year.

It was also due to additional provisions for impairment of some investments made by the company, he added.

He said despite the decline in the gross premium revenue at the end of the first quarter by two per cent, from BD9.7 million to BD9.5 million for the same period last year, the net premium revenue increased by 3 per cent from BD2.5 million to BD2.6 million.

Technical reserves increased by 10 per cent from BD12.7 million last time to BD14 million.

Shareholders' equity increased by 10 per cent from BD25.8 million for the first quarter of 2011 to BD28.4 million.

The return on shareholders' funds is 3.2 per cent compared to 4.4 per cent last time.

Earnings per share decreased to 13 fils as against 16 fils.

At the beginning of the year the company increased its paid-up capital from BD6.5 million to BD7.15 million. – TradeArabia News Service