Bahrain Kuwait Insurance Company (BKIC) shareholders have been awarded cash dividend of 30 per cent based on the company's financial results for last year, a report said.

The dividend of 30 fils per share amounts to BD2.14 million ($5.65 million). This was announced during the company's annual general meeting yesterday (March 5), reported the Gulf Daily News, our sister publication.

Chairman Abdullah Buhindi said last year proved to be yet another difficult period for markets in which the company operated, due to reasons beyond its control.

"We started the year with the hope and expectation that government spending in Bahrain and Kuwait will help launch many key projects during the year but that unfortunately did not happen," chief executive Ebrahim Alrayes said.

"In Bahrain, the delay in passing the budget directly resulted in non-implementation of many major projects, including some that were to be taken up with the aid promised by the GCC states.

"In Kuwait, continued disagreements between the executive and the legislature resulted in holding up of key major projects.

Alrayes said the management was hopeful that the current year would usher in a period of economic growth through construction and development.

Last year also saw a sudden spike in claims occurrence, he added.

"While Bahrain market witnessed a spurt in property losses, Kuwait suffered a worsening of losses under motor class. This has directly affected our technical result and the underwriting profit fell from BD3.96 million in 2012 to BD3.32 million last year."

The company's overall profits consequently slid from BD4.2 million in 2012 to BD3.7 million last year.

The chief executive said he expects international oil prices to remain at current high levels and the non-oil sectors to perform better this year.

"This should reflect broadly in the growth of the Bahraini economy during the year. Projects whose implementation has been delayed due to the late budgetary approval last year are expected to set out and activate other sectors of the economy, including insurance," he said.

"In Kuwait, a number of projects in oil and government sector are expected to be announced and these in turn should provide necessary impetus to other sectors of the economy."

Political stability in Bahrain and Kuwait should greatly assist in setting the wheel of development in motion once again.

He also said the three-year business plan till 2016 has been approved by the board.

The plan lays emphasis on expansion of personal lines business and the use of Information Technology to market the products and to improve services. It was also announced that a new ten-member board for the next three years had been formed.

Kuwait's Gulf Insurance Company, holding 56.12 per cent stake, is the majority shareholder in BKIC. – TradeArabia News Service