Bahrain Kuwait Insurance Company (BKIC) has reported consolidated net profit attributable to the shareholders of BD1.485 million for the three months ended June 30, 2021 compared to BD1.448m of the same period last year, representing an increase of 3 per cent.
Earnings per share during the second quarter of the current year were 10 fils same as the second quarter of last year.
Total comprehensive income attributable to the shareholders reached BD1.783m in Q2-2021 compared to BD2.955m in Q2-2020, registering a decrease of 40pc as fair value of available for sale investments which had a significant recovery in Q2-2020 post Covid-19 impact market reaction.
The company achieved 19.4pc growth in gross premium revenue from BD17.044m in the second quarter last year to BD20.302m in the second quarter of current year.
The underwriting profits increased by 47pc, from BD1.141m in the second quarter of last year to BD1.677m in the second quarter of current year.
The net investment income decreased by 78pc, from BD0.589m in the second quarter of last year to BD0.128m in the second quarter of current year.
The consolidated financial results for the half year period ended June 30, 2021 presented a net profit attributable to the shareholders of BD2.435m, compared to BD2.302m of the same period last year, representing an increase of 6pc.
Earnings per share were 16 fils during the current period compared to 15 fils of the same period last year.
The total comprehensive income attributable to the shareholders was BD2.822m compared to BD1.968m for the same period last year, registering an increase of 43pc.
The company achieved 18pc growth in gross premium revenue of BD44.927m during the first half of this year, compared to BD38.019m in the first half of last year.
The underwriting profits increased by 42pc, from BD1.732m in the first half of last year to BD2.461m in the first half of this year.
The net investment income decreased by 41pc, from BD1.173m in the first half of last year to BD0.691m in the first half of this year as the company did not sell investments in the current year, to book any profit on sale.
The increase in the net profit for the half year ended June 2021 in comparison to the same period last year mainly relates to the significant improvement in company’s core underwriting business.
The total shareholders’ equity as of end-June 2021 is BD40.293m compared to BD39.607m as of end-2020, representing an increase of 2pc.
The total assets by end-June 2021 reached BD228.278m compared to BD239.523m as end-2020, representing a decrease of 5pc.
The net technical reserves increased from BD36.001m at the end of the previous year to BD41.290m at the end of the current period.
Commenting on the results, the board of directors said: “The board is pleased to announce the positive results for the first half of 2021 despite the continuing effect of the pandemic on our economy leading to reduction in activities both locally and globally. The board is pleased with the management’s conservative approach in increasing the company’s technical reserves, which will allow the company to surf the waves of future uncertainties from the impact of Covid-19 on the economy.”
BKIC’s chief executive Dr Abdulla Sultan said: “The company’s consolidated results at the end of the first half of this year were encouraging even compared to the performance in the first half of last year. The company continues to become even more conservative in its provisioning, preparing for the evolution into IFRS 9 & 17 parallel run in 2022.”
He added: “The company is well aligned with its 2021 plans and the 2 main pillars that have had evident progress during the first half of 2021 are the digital transformation strategy as well as the sustainability implementation project.”
BKIC is a subsidiary of Gulf Insurance Group (gig) which is the largest insurance group in Kuwait in terms of written and retained premiums, with operations in life and non-life as well as Takaful insurance.