BKIC Q1 profits surge 40pc despite crisis
Manama, April 28, 2009
Bahrain Kuwait Insurance Company's (BKIC) underwriting profits rose to BD1.302 million ($3.454 million) in the first quarter of the year, a 40 per cent increase on the BD932,735 for the same period last year.
The company also registered an increase in gross premium revenue of BD9.274 million an increase of 17 per cent compared to BD7.926 million last time, in spite of the bearish market conditions in the region.
But it reported a 25 per cent decrease in investment income, down from BD801,014 to BD604,055.
This was due to the decline in the region's financial markets and decrease in interest rates, said chief executive officer Ebrahim Al Rayes.
Also, the final results were affected by the fall in the exchange rate of the Kuwaiti dinar by 7.5 per cent as compared to the end of last year.
Earnings per share decreased to 26 fils as against 28 fils last time.
The return on shareholders' equity increased to 7.08 per cent from 6.61 per cent.
Technical reserves registered an increase of 4 per cent from BD12.710 million to BD13,186 million for the same period of this year.
Al Rayes said he hoped that the trend in growth will continue despite the increasing competition in the market, and the company will fulfil its objectives and retain its current position.-TradeArabia News Service