Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD3.7 million ($9.8 million) for last year compared with BD4.2 million in 2012.

Chairman Abdulla Buhindi said the decline resulted from increased losses due to the high rate of accidents in the motor category. The fire and general accidents class also recorded a few large losses, reported the Gulf Daily News, our sister publication.

The net profit of the three months ended December 31 last year amounted to BD861,000 compared with BD1.1 million for the same period in the previous year due to decreased gross earnings from BD4 million to BD3.5 million.

Buhindi said total assets increased from BD87.4 million in 2012 to BD97 million last year.

Shareholders' equity registered an increase of 7 per cent from BD31.1 million in 2012 to BD33.3 million last year.

The company has achieved a return on shareholders' funds of 11.1 per cent for the year compared with 13.6 per cent for the last year.

The earnings per share have decreased from 59 fils in 2012 to 52 fils last year.

Book value per share has increased from 434 fils to 466 fils.

BKIC chief executive Ebrahim Al Rayes said despite the 9 per cent increase in the gross premium revenue from BD35 million in 2012 to BD38 million last year, there has been no significant change in the gross earnings due to the underwriting of a large project at the end of the year.

On the other hand, the amount of net claims rose by 11 per cent and underwriting profit declined by 16 per cent from BD3.96 million in 2012 to BD3.32 million last year.

Al Rayes said last year was a difficult year for the company, with increased rate of motor and fire accidents.

The situation was further aggravated by intense competition between companies to garner motor and health portfolios to compensate a shortfall in contractors insurance and marine insurance.

The company's board of directors in a meeting held yesterday proposed a cash dividend of 30 per cent (30 fils per share).-TradeArabia News Service