Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD2.8 million ($7.43 million) for the first nine months of this year, against BD3.1 million in the same period last year.

The decline was due to losses in fire and general accidents department, reported the Gulf Daily News, our sister publication.

The claims have slightly gone up in the motor department also.

Investment income at the end of the quarter registered growth of 12 per cent, reaching the BD1 million mark as compared with BD922,000 in the same period of last year.

The company registered a gross premium of BD25.8 million, same as that at the end of third quarter last year. However, the gross earnings increased by 5 per cent from BD10.2 to BD10.7 million, said the report.

Net profit for the three months amounted to BD827,000 as against BD1.6 million for the same period last year. The decrease is due to the high loss ratio in the fire and general accident department.

Shareholders' equity, increased by three per cent, from BD31.1 million for the third quarter last year to BD32 million at the end of September this year.

The return on shareholders' funds is 8.88 per cent at end of the third quarter, compared to 10.39 per cent for the same period last year.

Earnings per share is 40 fils at the end of September this year as against 43 fils in the same period last year.

"Despite the significant increase in motor accidents, the premium rates are still low which reflects the intense competition in the insurance market in Bahrain for this type of insurance," chief executive Ebrahim Al Rayes said.

"But continuing in this way may expose companies to greater losses in future periods."

Al Rayes said prices must be compatible with the degree of risk and companies have to compete on service only.

He expressed hope that results would improve in the coming periods and that BKIC will continue to maintain its lead.-TradeArabia News Service