BKIC REGISTERS NET PROFIT OF $11 MILLION

Bahrain Kuwait Insurance Company (BKIC) yesterday announced that it has proposed a cash dividend of 25 per cent (25 fils per share) and 10pc bonus shares to shareholders.

This is subject to approval at the annual general meeting.

The announcement was made by BKIC chairman Abdulla Buhindi at a meeting yesterday.

"BKIC achieved a net profit of BD4.149 million ($11m) for the year ended December 31, 2011 as compared with BD4.138m in 2010," Mr Buhindi said.

He added that the company still maintains its leadership in the Bahraini market.

"Total assets recorded an increase from BD81.7m in 2010 to BD83.8m in 2011," Mr Buhindi said.

Shareholders' equity registered an increase of 5pc from BD27.3m in 2010 to BD28.6m in 2011.

Liquid funds also increased from BD28m in 2010 to BD28.3m in 2011.The company achieved a return on shareholders' funds of 14.5pc for the year.

Book value per share rose from 421 fils as on December 31, 2010 to 440 fils as on December 31, 2011.

Net profit for the three months period ended December 31, 2011, amounted to BD679,639, as compared to BD806,534 for the same period in the previous year.

This decline is due to the additional provisions for impairment of investments made by the company during the last quarter.

"The company has achieved an increase of 9pc in the gross premium revenue from BD33.4m in 2010 to BD36.3m in 2011," BKIC chief executive Ebrahim Al Rayes said. "The underwriting profit increased to BD4.2m in 2011 as compared with BD3.9m in 2010.

"Investment income recorded a decrease of about 25pc from BD781,000 in 2010 to BD587,000 in 2011.

"We are pleased with these results, despite the more difficult and competitive market environment in Bahrain and Kuwait," Mr Al Rayes said.

"The company, during the year, introduced new products and increased distribution channels and improved service quality to fulfil objectives and retain its current position in the market," he added.