Bahrain: BKIC posts 31% lower profits in 1H
Source: Middle East Insurance Review | Sep 2015
Bahrain Kuwait Insurance Company (BKIC) has posted profits of BHD1.8 million (US$4.8 million) for the first half of this year, 31% lower than profits of BHD2.6 million reported for the corresponding six months of last year.
Gross premiums decreased by 6% to BHD20 million during the first six months of the year, from BHD21.2 million in the corresponding period last year, due to intense competition leading to reduced rates in key accounts.
BKIC Chairman Murad Ali Murad said in a statement that the financial performance in the first half was good, after taking into account an extraordinary profit of BHD1.5 million booked in the first half of last year from the sale of an investment property.
He said that despite the intense competition, especially in motor and medical, BKIC’s technical profits recorded a slight increase of 2% from January to June this year to BHD1.34 million from BHD1.31 million in the same period last year.
Net investment income decreased to BHD934,000 in the first half of 2015 compared to BHD1.8 million in the same half last year. However, last year’s investment income included an extraordinary gain on the sale of an investment property.
BKIC’s investments have increased, due to the purchase of a 40.93% stake in Takaful International Company in the second quarter at a total cost of approximately BHD2.5 million. The company hopes that the investment will contribute to the growth of the group’s profits.
BHD1 = US$2.65