Bahrain Kuwait Insurance Company (BKIC) has reported a net profit of BD4.2 million ($11 million) for last year, an increase of 15 per cent over BD3.7 million in 2013, a report said.

Out of this, BD2.96 million (BD3.32 million in 2013) was generated from insurance activities, reported the Gulf Daily News, our sister publication.

Investment income amounted to BD2.2 million (BD1.05 million in 2013).

BD1.5 million of investment income was out of gain on sale of an investment property.

The company's board of directors have decided to propose a cash dividend of 35 per cent to the shareholders on the paid-up capital of BD7.15 million, equivalent to 35 fils per share.

Chairman Murad Ali Murad said the company was able to achieve good results in 2014, despite difficult circumstances in the region contributed mainly by severe price competition among companies especially in high loss ratio classes of motor and medical where loss ratios sometimes exceed 100 per cent.

He also added that the company's total assets for the first time exceeded BD100m mark to stand at BD104.8 million (BD97 million in 2013).

Shareholders' equity increased from BD33.3 million in 2013 to BD35 million last year and the return on equity was 12.11 per cent (11.12 per cent in 2013).

EPS was 59fils (52fils in 2013).

For the fourth quarter of last year, gross earnings increased to BD3.6 million (BD3.5 million for the same period in 2013).

Net claims increased to BD2.1 million (BD1.7 million for the same period 2013), mainly on account of increase in motor claims.

Consequently technical profit decreased to BD0.62 million in the last quarter of 2014 (BD0.94 million for the same period 2013).

Investment income during fourth quarter increased to BD115,000 in 2014, compared to BD16,000 for the same period last year.

Net profit was BD536,000 in three months ending on December 31, 2014 as compared to BD861,000 for the same period last year.

Chief executive Ebrahim Al Rayes said that the company has been able to increase the gross written premium by 4oc to BD39.8 million (BD38.2 million in 2013).

Gross earnings also increased by 4 per cent to BD14.7 million (BD14.2 million in 2013).

During the year, a new website for online selling of personal lines products was launched.

The company also signed an agreement with Gulf Air wherein individual buyers (who are members of Falcon Frequent Flyer Programme) of personal lines insurances will get free air miles.

The company also developed various motor products with different options and benefits. Mr Al Rayes said that during the year, international credit rating agency A M Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of the company.

The outlook for both ratings is stable, and the company continues to maintain its leadership position in Bahrain market and has ambitious plans to increase production in coming years. The company is working towards developing new products and services to maintain the competitive position. – TradeArabia News Service