EPS at 66.49fils, BOD recommends 36 percent cash dividend

Farqad Abdullah Al-Sane

KUWAIT: Farqad Abdullah Al-Sane, Chairman of Gulf Insurance Group (GIG), announced yesterday that the Group achieved a net profit of KD 11.9 million ($39.2 million), or 66.49fils per share for the financial year ended December 31, 2018. This represents an increase of 18.2 per cent over the KD 10.1 million ($33.1 million) made in 2017. Net Underwriting Income came to KD 11.98 million ($39.4 million), an increase of 45.1 percent or KD 3.7 million ($12.3 million)compared to the same period last year. This increase is due to the improvement of Group's underwriting results and Group's share of results from its subsidiaries.

The Board of Directors has recommended the distribution of 36 percent cash dividend (36fils per share) for the financial year ended December 31, 2018, subject to the approval of GIG's General Assembly and other concerned regulatory authorities.

GIG's book value per share reached 498filsas at December 31, 2018, compared to 456filsat the end of 2017, with an increase of 9.2 per cent. GIG's shareholder equity increased in 2018by KD 7.5 million ($24.8 million) to reach KD 89.1 million ($293.5 million), representing a 9.2 per cent increase from the KD 81.6million ($268.7 million) at 2017-end.

The Group's gross written premiums grew 10.2per cent compared to 2017, with an increase of KD 31 million ($102million) to reach KD 335.7 million ($1.1billion).

Net investment and other income for GIG reached KD 13.3million ($ 43.8 million) at the closing of 2018, with an increase of KD 2.8 ($9.3million), or 27.1 per cent, compared to 2017.

GIG's net technical reserves came to KD 131.8 million ($433.83 million) as at December 31, 2018, with an increase of KD 2.9 million ($9.5 million), or 2.2 per cent, compared to the KD 128.9 million ($424.3 million) registered on December 31, 2017.

Total assets increased by KD 36.4 million ($120 million) to reach KD 529.3 million ($1.74 billion) at year-end, a growth of 7.4 percent compared to the same period in 2017.

Commenting on the results, Al-Sanesaid: "Our results for the year2018 reflect the strength of GIG as a group, its ability to take risks through diversifying revenue sources and our ability to preserve stakeholders' benefits and protect their rights. This is also in line with our constant endeavor to provide the best insurance services to our valued customers in all markets we operate in, supported by our proven strategy which aims at expanding our distribution networks, and our regional expansion plan to acquire greater market share locally and regionally."

He added: "We thank our clients for these achievements, as well as the unlimited support from our shareholders, especially KIPCO - Kuwait Projects Company (Holding) - and Fairfax Middle East Ltd. I would also like to express my sincere appreciation to our dedicated employees for their efforts and all the concerned regulatory authorities in Kuwait."