Bahrain Kuwait Insurance Company (BKIC) saw its first half net profit rise to BD2 million ($5.28 million), a 34 per cent increase on the BD1.5 million in the first half of 2012.

Net profit for the second quarter of this year was an impressive BD1.1 million compared with BD588,000 for the same period last year, reported the Gulf Daily News, our ssiter publication.

BKIC chief executive Ebrahim Al Rayes said that underwriting profit for the period amounted to BD1.63 million compared with BD1.36 million for the same period last year, an increase of 19 per cent.

Income from investment increased by 74 per cent from BD446,000 in the first half of 2012 to BD777,000 this year, Rayes added.

He said that, despite the decline in the gross premium revenue from BD19.1 million to BD19 million, gross earnings increased by 10 per cent from BD6.7 million to BD7.3 million.

Shareholders' equity increased by 8 per cent from BD28.5 million to BD30.9 million.

Return on shareholders' funds increased from 5.3 per cent to 6.5 per cent. Earnings per share stand at 28 fils as compared to 21 fils as of end of June 2012.

"Despite the severe competition in both Bahrain and Kuwait insurance markets, BKIC was able to achieve good results through its good reputation and the trust that it enjoys in both markets," said Al Rayes.

"I hope that results will improve in the coming periods and that BKIC will maintain its lead position," Al Rayes added.

BKIC works within the Kuwaiti Gulf Insurance Group, which is owned by Kuwait Investment Projects Company and Fairfax. – TradeArabia News Service