Ebrahim Al Rayes, the CEO BKIC told the annual general assembly on Monday that the growth reflects the confidence of clients in the financial strength and good reputation of the company.
In the backdrop of BD4.1 million net profits in 2010, BKIC declared 35% cash dividend which was approved by the shareholders at annual general meeting.
The AGM approved the distribution of a cash dividend of 35% (35 fils per share). During the meeting the AGM elected the four new members to the board of directors for three years term including Abdulla Hassan Buhindi, Murad Ali Murad, Hasan Zainalabedin and Dr Abdul Rahman Ali Saif.
“The oil prices would remain at the current high level in the short and medium terms. Consequently, the developmental process is expected to continue in the region and have a positive impact on insurance activities,” added Al Rayes.
“Despite difficult and competitive market environment in Bahrain and Kuwait, BKIC achieved a net profit of BD 4.1 million in 2010 compared to BD4 million in 2009 and the company still maintains its leadership in Bahrain’s market, and that the profit for 2010 has been the best ever since the company started its operations,” Abdulla Hassan Buhindi, the Chairman of the board of directors in a statement said.
Buhindi said that the company has achieved a return on shareholder’s fund of 15% for the year. Shareholder’s equity registered an increase of 12% from BD24.4 million in 2009 to BD27.4 million in 2010. The liquid funds have increased from BD 25 million in 2009 to BD 28 million in 2010. The earnings per share increased from 62 fils in 2009 to 64 fils in 2010. He also added that the Board of Directors has approved the business plan which the company formulated for three year period (2011-2013) which includes the introduction of new products and increased distribution channels and improved service quality.
Buhindi revealed that the company has recently completed purchase of a new 11 storied building in Seef District to serve as the head office of the Company as for the present building which is located in Diplomatic area will be within the Company’s investment portfolio.
“In the year 2010, our company signed a memorandum of understanding (MoU) with Bank of Bahrain and Kuwait to take advantage of their large client base for marketing personal insurance such as Motor, Home, Travel, Life and Medical, etc. We have also embarked on an ambitious reinsurance programme in cooperation with the majority shareholder Gulf Insurance Company and its subsidiaries with the aim of increasing retained premium and commission income. The changes were broad based in nature and included proportional and non proportional treaties across all classes of business. This arrangement is first of its kind in the region.”