Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD914,000 ($2.4 million) for the first quarter of this year.

The company posted a profit of BD917,000 for the same period last year.

Despite the decline in the gross premium revenue by five per cent from BD9.5 million at the end of first quarter last year to BD9 million for the same period this year, the net premium revenue has increased by 17 per cent from BD2.6 million to BD3.1 million, chief executive Ebrahim Al Rayes said.

Investment income increased by 74 per cent from BD282,327 to BD491,995.

This increase is due to the gain from sale of some assets as well as decreased provisions for impairment made by the company as compared to last year.

Shareholders' equity increased by 4.8 per cent from BD28.4 million last time to BD29.8 million.

The quarterly return on shareholders' funds is 3.1 per cent compared with 3.2 per cent last time.

Technical reserves increased by 5 per cent from BD14 million to BD14.7 million and earnings per share were unchanged at 13 fils.

Al Rayes said that despite improved commercial movement in the country, the government spending in support of projects is still modest.

The company launched during the first quarter of this year, a new pickup and delivery service in motor insurance, which is the first of its kind in the region, he said.

BKIC has also launched an improved bancassurance product in association with BBK and also developed a sophisticated IT system to implement the same.

Al Rayes expressed the hope that the company would achieve better results in the near future.-TradeArabia News Service