BKIC posts record net profit of $11m
Manama, February 8, 2011
Bahrain-based Bahrain Kuwait Insurance Company (BKIC) achieved a net profit of BD4.1 million ($10.9 million) last year compared to BD4 million in 2009.
Chairman Abdulla Buhindi announced that the board, at its meeting yesterday, proposed a cash dividend of 35 per cent representing 35 fils per share to the shareholders subject to the approval at the annual general meeting.
He said that the company still maintains its leadership in Bahrain's market, and that the profit for 2010 has been the best ever since the company started its operations.
Total assets have recorded an increase of 4 per cent from BD79 million in 2009 to BD82 million in 2010. Shareholder's equity registered an increase of 12 per cent from BD24 million to BD27 million.
The liquid funds increased from BD25 million to BD28 million.
The company has achieved a return on shareholders' funds of 15 per cent for the year. Book value per share has increased from 375 fils to 421 fils.
Net profit for the fourth quarter amounted to BD806,534, compared to BD293,940 for the same period in 2009.
Buhindi said that the company has recently completed purchase of a new 11-storey building in Seef District to serve as the head office.
'The company has achieved an increase of 3 per cent in the gross premium revenue from BD31.8 million in 2009 to BD33.4 million,' said chief executive Ebrahim Al Rayes.
'The underwriting profit increased to BD3.9 million in 2010 compared with BD3.8 million in 2009.
'Investment income recorded a decrease of about 19 per cent to BD781,000 due to all-time low interest rates, declining trend of dividends and additional provisions for impairment of investments made by the company,' he added.
Al Rayes said that he was very pleased with these results despite the more difficult and competitive market environment in Bahrain and Kuwait.
He added that the board had approved the business plan the company formulated for three years to 2013.
It includes the introduction of new products, increased distribution channels and improved service quality, he said, and hoped that the implementation of the plan will help the company fulfil its objectives and retain its current position. – TradeArabia News Service