Kuwait Insurance Co board recommends 40% cash dividends to shareholders for FY 2023
KUWAIT CITY, March 27: Kuwait Insurance Company announced that, during the year 2023 it has achieved a gross profit amounting to KD 13.4 million (USD 43.5 million) compared to KD 12.4 million (USD 40.1 million) last year, which was the profit after excluding the exceptional non-recurring profits amounting to KD 31.7 million (USD 103 million) which resulted due to the swap of Ahli United Bank shares held by KIC into Kuwait Finance House shares, after the acquisition in the year 2022.
The Net profit amounted to KD12.1 million (USD 39.3 million) with Earnings Per Share of Fils 65.61 (US Cents 21) after deducting the realized gain from sale of investments during the year 2023 amounting to KD 1.3 million (USD 4.2 million), which, will be transferred directly to the retained earnings.
The Board of Directors recommended distributing cash dividends to shareholders at the rate of 40%, which means Fils 40 per share, and this recommendation is subject to the approval of the company’s general assembly.
The Gross Written Premium this year amounted to KD61.9 million (USD 201 million), compared to KD50.5 million (USD 162.3 million) last year which shows an increase of KD 11.4 million (USD 37 million), equal to 22.6%.
Earned premiums amounted to KD53.8 million (USD 175 million) for this year, compared to KD50.7 million (USD 165 million) which shows an increase of KD3.1 million (USD 10.1 million) equal to 6.1%.
Operating profit amounted to
KD11.3 million (USD 37 million) compared to KD 6.1 million (USD 19.8 million), which shows an increase of KD5.2million (USD 16.9 million), equal to 84.67%, because of the increase in earned premiums and due to the stability in the cost of insurance and reinsurance.
The total Insurance and reinsurance expenses decreased to KD 42.4 million (USD 137.7 million) for the current period from KD 44.5 million (USD 144.5 million) for the same period last year, which shows a total decrease of KD 2.1 million (USD 6.8 million) equal to 4.77%.
Retained earnings amounted to KD80.5 million (USD 261.4 million) during the year 2023, compared to KD 75 million (USD 243.5 million) last year, which shows an increase of KD 5.5 million (USD 17.9 million), equal to 7.33%.
Mr. Sami Sharif, Chief Executive Officer, stated that we have achieved these operating results as a part of fulfilling our obligations towards shareholders and customers and we continue to follow a conservative policy with our continued success in managing the challenges facing us. In pursuit of diversifying the products and services that we provide to customers, Kuwait Insurance Company acquired 81.5% of the National Takaful Insurance company during the fourth quarter of 2023, which will provide Takaful Insurance services.
Mr. Sami Sharif mentioned that in addition to the sales and profits, this year was also full of other accomplishments, such as, the reaffirmation of our company’s credit ratings from AM Best and Moody’s credit rating agencies with an A- (Excellent) and A3 respectively, both with a stable outlook and we have taken progressive steps towards geographical expansion, outside Kuwait.
Aiming to focus on the importance of corporate social responsibility, the company is keen in investing and developing the staff by providing training and enrolling them for educational programs, which will develop them in providing insurance services to organizations, individuals, and stakeholders. With this step, they not only serve the interests of the society but also of the State of Kuwait.
We still look forward to accomplishing a lot in the coming years and I would like to take this opportunity to thank everyone who has contributed in achieving our goals, including the Board of Directors, the shareholders, and the company’s employees.