Buhindi, was talking to reporters on the sidelines of the annual general meeting (AGM) of the company and said that BKIC was awaiting licenses from the regulators and the year 2013 would likely to be year of regional expansion.
During the AGM which was attended by 83% of the shareholding base of the company approved the recommended cash dividend of BD2.145million in addition to ratifying the financials for the year 2012.
BKIC board of directors had proposed a cash dividend of 30% (30 fils per share) to the shareholders which was approved during the AGM.
“BKIC has achieved a net profit of BD 4.2 million for the year ended 31st December 2012 as compared to 4.14 million in 2011,” the Chairman said.
He also added that this the best result ever achieved in the company’s history. It should be noted that the net profit of the three months period ended 31 December 2012 amounted to BD 1.1 million as compared to BD 679,639 for the same period in the previous year.
“This increase is due to the reduction in provisions for impairment of investments made by the company during the last quarter,” he said.
Buhindi also said that the total assets have recorded an increase from BD 83.8 million in 2011 to BD 88.3 million in 2012. Shareholder’s equity registered an increase of 9% from BD 28.6 million in 2011 to BD 31.1 million in 2012. The liquid funds have also increased from BD 28.3 million in 2011 to BD 31.4 million in 2012. The Company has achieved a return on shareholders’ funds of 13.6% for the year 2012 as compared to 14.6% for the last year. The earnings per share have increased from 58 fils in 2011 to 59 fils in 2012. Book value per share has also increased from 400 fils as on 31 December 2011 to 434 fils as on 31 December 2012.
“Despite the 3% decrease in the Gross Premium Revenue due to the economic slowdown, the company has achieved an increase of 4% in Gross Earnings from BD 13.6 million in 2011 to BD 14.2 million in 2012. The underwriting profit declined by 6% from BD 4.2 million in 2011 to BD 3.96 million in 2012. Investment income recorded an increase of 55% from BD 586,771 in the year 2011 to BD 910,467 in 2012,” Ebrahim Al Rayes, the Chief Executive Officer of BKIC, said.
Al Rayes said that he was very pleased with these results. He added that in spite of the more difficult and competitive market environment in Bahrain and Kuwait the company was able to retain its leading position in Bahrain Market.