MANAMA: Bahrain Kuwait Insurance Company (BKIC) has reported a consolidated a net profit attributable to the shareholders of BD0.813 million for the three months ended 30 September, 2021 compared with BD0.778m in the same period last year, representing an increase of 4.5 per cent.
Earnings per share remained at 5 fils.
The total comprehensive income attributable to the shareholders reached BD0.262m in Q3-2021 compared with BD0.991m in Q3-2020, registering a decrease of 74pc due to reduction in fair value of AFS investments.
Gross premium revenue marginally decreased by 0.4pc to BD18.084m in the third quarter of this year from BD18.157m in the same period last year.
The underwriting profits reduced by 33pc, from BD0.838m in the third quarter of last year to BD0.563m in the third quarter of current year due to strengthening of reserves.
The net investment income increased by 45pc, from BD0.515m in the third quarter of last year to BD0.744m in the third quarter of current year.
For the nine months ended 30 September, 2021, the consolidated net profit attributable to the shareholders was BD3.248m, compared with BD3.08m of the same period last year, representing an increase of 5.5pc.
Earnings per share were 22 fils this year compared with 21 fils same period last year.
Total comprehensive income attributable to the shareholders was BD3.084m compared with BD2.959m for the same period last year, registering an increase of 4.2pc.
The company achieved 12pc growth in gross premium revenue of BD63.011m for the nine months, compared with BD56.176m for the same period last year.
The underwriting profits increased by 18pc from BD2.570m to BD3.024m over the same period.
The net investment income decreased by 15pc from BD1.688m to BD1.435m due to no large redemption activities of investment equities as opposed to the previous year.
The increase in the net profit for the three quarters in comparison with the same period last year mainly relates to the significant improvement in the company’s core underwriting business.
Total shareholders’ equity as of end-September 2021 was BD40.555m compared with BD39.607m as of end-2020, representing a increase of 2.4pc.
The total assets by end-September 2021 reached BD222.463m compared with BD239.523m as end last year, representing a decrease of 7pc, mainly due to reduction in receivables.
The net technical reserves rose from BD36.001m at end-2020 to BD41.830m at the end of the current period.
The board of directors reaffirmed their satisfaction by stating: “The board is pleased to announce the positive results for the first three quarters of 2021. While recognising Bahrain’s success story in overcoming the malevolent threats of the pandemic wave, we are pleased to distinguish a new milestone ahead marking life returning to a sense of normalcy. Therefore, we at the board are confident and uphold the strong belief that the company has adapted fittingly and is adequately positioned to achieve all targets for 2021.”
BKIC chief executive Dr Abdulla Sultan affirmed that the company’s consolidated results at the end of the third quarter are encouraging even in comparison with the performance of the same period for 2020 when the circumstances revolving around the business encompassed a larger benefit from lower claims during an unprecedented pandemic shock.
One of the ramifications surrounding Covid-19, in conjunction with the 2030 vision, has significantly affected the BKIC transformation project whereas not only has it been determined to actively promote the digital channels, but to also reduce the number of company branches.
Dr Sultan highlighted the twofold impact – ensuring smaller more dedicated and effective means of operation as well as adopting a new fresher look and feel at prime contemporary locations.
Additionally, he emphasised the importance of the management’s preparation of comprehensive 2022 budget plans with all branches and the subsidiary in order to secure the same or better trends in performance for the future months and years ahead.
Lastly, the CEO added that this occasion is as good as any to also accentuate AM Best’s reaffirmation of BKIC’s A- (Excellent) credit rating with a stable outlook.
“At BKIC, not only do we continuously safeguard and develop stakeholders’ interests, but we strive to persevere and overcome any newly manifested challenges. In doing so, we showcase our dedication to our customer base and further enhance our stance as innovators at the local market and pioneers in our field of expertise,” Dr Sultan said.
KIPCO – Kuwait Projects Company – is Gulf Insurance Group’s largest shareholder, followed by the Canadian-based Fairfax Financial Holding.
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