14-05-2025
BKIC announces BD 1.6m profit, over 1% pre-tax net profit growth
Bahrain Kuwait Insurance Company (BKIC) recorded a more than 1% increase in first quarter 2025 profit attributable to shareholders before tax, reflecting growth in its underlying business performance.
The consolidated financial results showed a net profit after tax attributable to shareholders of BD 1.596 million, compared to BD 1.680 m for the same period last year, representing a 5% decrease. This change is due to the first-time implementation of the 15% Domestic Minimum Top-up Tax in Bahrain, which came into effect in January 2025 for multinational companies and was not reflected last year.
Excluding the impact of this new tax regulation, the company's profitability continued to grow. The company reported earnings per share of 11 fils for the first quarter of the current year, consistent with the same period last year.
Total comprehensive income attributable to the shareholders of the company reached BD 1.770 m in the first quarter of the current year, compared to BD 1.507 m during the same period last year, an increase of 17%, primarily driven by higher fair values of investments.
Insurance revenue increased by 3% from BD 27.341 m in the first quarter of last year to BD 28.032 million in the first quarter of the current year. The Insurance service result decreased by 5%, from BD 0.998 m in the 1st quarter of last year to BD 0.949 m in the 1st quarter of the current year.
The Total investment income decreased by 3%, from BD 1.633 m in the 1st quarter of last year to BD 1.584 m in the 1st quarter of the current year. The equity attributable to the shareholders of the company as at 31st March 2025 is BD 42.997 m compared to BD 44.901 m as end of last year, representing a decrease of 4%, mainly due to allocation towards shareholders' dividends payouts. The total assets by 31st March 2025 reached BD 190.520 m compared to BD 186.017 m as end of last year, representing an increase of 3%. The net Insurance contract liabilities increased from BD 64.433 m at the end of the last year to BD 64.946 m at the end of the current period, reflecting a marginal increase of 0.8%.
Board of Directors' Comments
Upon concluding their review of the company's results and achievements, the Board of Directors expressed their satisfaction stating: 'The Board is pleased with the results for the first three months of 2025. The Board commended the efforts of the company's management and employees, for their efforts in continuously growing the company.
Largely due to the support and confidence of the BKIC customers, business partners and in conjunction with the strong commitment and eager dedication of both management and employees, the results continue to demonstrate both a positive and improving trend which the board is pleased with.
As the company celebrates its 50th year anniversary, the Board of Directors is very pleased with the continuous positive trend in the company's performance and enhancements in its service offerings.
Chief Executive Officer's Comments
Echoing the sentiment of the Board, BKIC's CEO Dr. Abdulla Sultan reiterated that 'the company's consolidated results in the 1st quarter of 2025 are surely gratifying. Achieving Insurance revenue and Net Profit growth in the current economic conditions is a worthy accomplishment. In addition, witnessing improved Net Profits in both BKIC and the Takaful International subsidiary is even more rewarding.
Moreover, Dr. Sultan expressed his pride in the latest additions in senior management to the company. The profile of the new COO Mr. Mohamed AlMaraj and his work ethics, culture and vision is in harmony with the company. During this year, the company will be launching various new technological advancements in its digital channels and instigate its internal customer engagement tools which are both part of the company's approved strategy 'Customer 1st'.
