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Daily Tribune
5 days ago
- Business
- Daily Tribune
Bahrain Kuwait Insurance Company discloses financial results for half year ended 30th June 2025 showcases BD 2.7 million net profit
Bahrain Kuwait Insurance Company (BKIC) B.S.C. (trading code in Bahrain Bourse 'BKIC' and in Boursa Kuwait 'BKIKWT') announced its consolidated financial results for the six months ended 30th June 2025. Three months ended 30th June 2025 The consolidated financial results showed a net profit after tax attributable to shareholders of BD 1.089 million, compared to BD 1.258 million for the same period last year, representing a 13% decrease. This variance is due to the first-time implementation of the 15% Domestic Minimum Top-up Tax in Bahrain and Kuwait, which came into effect in January 2025 for multinational companies and was not reflected last year. However, the Company recorded growth of 2% in profit attributable to shareholders before tax. Earnings per share for the quarter reached 7 fils, marking a decrease of 1 fils compared to the same period in 2024. The total comprehensive income attributable to the shareholders increased by 52% and reached BD 1.122 million in Q2-2025 compared to BD 0.736 million in Q2-2024. The Company reported insurance revenue of BD 27.719 million for the second quarter of the current year, compared to BD 29.317 million in the same period last year. The insurance service result stood at BD 1.076 million in comparison to BD 1.206 million in the same period last year, impacted by an increase in claims and the Company's continued prudent approach to strengthening reserves. Meanwhile, total investment income saw a robust growth of 81%, rising from BD 0.862 million in the second quarter of last year to BD 1.558 million this year. Six months The consolidated net profit after tax attributable to shareholders stood at BD 2.685 million for the half-year ended 30th June 2025, compared to BD 2.938 million in the corresponding period of 2024, representing a decrease of 8% following the first-time implementation of the new 15% Domestic Minimum Top-up Tax. However, the Company reported a 1.4% increase in profit attributable to shareholders before tax for the current period compared to the same period last year, reflecting continued operational strength. Earnings per share for the period were 18 fils, compared to 20 fils in the same period last year. Meanwhile, total comprehensive income attributable to shareholders increased significantly by 29%, reaching BD 2.892 million versus BD 2.243 million in the prior-year period. The Company recorded a 5% growth in gross written premiums, reaching BD 56.562 million during the first half of the year, compared to BD 53.695 million in the same period of 2024, reflecting continued business expansion and strong market presence. However, there was a marginal decline of 1.6% in Insurance revenue from BD 56.658 million in last year to BD 55.751 million in current year. The Insurance service results reduced from BD 2.204 million in the First half of last year to BD 2.025 million in the first half of the current year primarily due to an increase in reported claims mainly from the Motor Portfolio. In contrast, total investment income delivered strong growth of 26%, rising to BD 3.142 million from BD 2.495 million in the same period last year. The total shareholders' equity as at end of June 2025 was BD 43.959 million compared to BD 44.901 million as at end of last year, representing a decrease of 2% mainly due to allocation towards increased shareholders' dividends payouts. The total assets by the end of June 2025 reached BD 186.652 million compared to BD 186.017 million as at end of last year, representing a marginal increase of 0.3%. The net Insurance contract liabilities increased from BD 64.433 million at the end of the last year to BD 67.145 million at the end of the current period. Board of Directors' Comments All members of the Board expressed their satisfaction: 'Not only is the Board pleased with the results for the first six months of 2025, but all evidence suggests that, whilst monitoring the key strategic projects, the Company is progressing in a very robust, sound, and prudent manner.' Notably, the 2025 results would be impacted with the Domestic Minimum Top-up Tax for the first time after its implementation at 1/1/2025. Therefore, the Board calls upon all shareholders to also consider the 'Pre-Tax Profits' when comparing the Company's results against previous years or against other peers in the marketplace. Chief Executive Officer's Comments BKIC's CEO Dr. Abdulla Sultan stands firm in assessing the 1st half of 2025 consolidated results as satisfactory albeit the significant increase in both Motor claims frequency and severity in 2025, a trend mainly driven by claims inflation. Notwithstanding, the Company has thus far obtained the necessary approvals to implement a stringent plan to ensure enhanced customer service whilst maintaining the overall profitability in the Motor portfolio. Dr. Sultan commented with great prominence: 'The Company is very pleased to announce that its parent GIG Kuwait has obtained an AM Best issuer Credit Rating upgrade to A+.' And in conclusion, he also remained resolute and passionate in his words of praise: 'On this occasion, I would like to thank all teams at BKIC Bahrain, BKIC Kuwait, and our subsidiary for their unfaltering efforts throughout the first half of 2025. The teams remain determined and consistently continue to demonstrate their outstanding dedication, hardwork, and commitment to the Company.'
Daily Tribune
14-05-2025
- Business
- Daily Tribune
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'.
