(MENAFN - Arab News) The Gulf Insurance, Kuwait's and the Middle East's leading insurance service group held its 50th annual general meeting and 17th extraordinary general assembly meeting followed by the annual transparency forum on Thursday at the Gulf Insurance Group (GIG) headquarters in Sharq.
Gulf Insurance Chairman Farqad Al Sane who presided the general assembly, presented the company's financial results for the year 2013 and its 2014 outlook to shareholders and financial analysts. Present also during the event were other GIG Executive Management and Board of Directors
Al Sane announced that it achieved net profit of KD 10.2 million (36 million) equivalent to 55.67 fils per share for the financial year ending 31/12/2013 with a rise of 10 percent as compared to KD 9.27 million (32.8 million) for the same period last year, and approved the distribution of cash dividends of 30% (30 fils per share). The book value of the share jumped to 428.4 fils per share compared to 397.7 fils per share in the same period last year
During the year, shareholders' equity increased by 7.6 percent or the equivalent of KD 5.6 million (19.7 million) to reach KD 78.5 million (277.4 million) as of 31 December 2013, compared to KD 72.9 million (257.7 million) in 2012 after the distribution of dividends by 25 percent cash in respect of the financial year ending 31/12/2013
The value of subscribed premiums increased by 8 percent in 2013 compared to the same period last year, reaching KD 157 million (554.9 million) with a rise of KD 11.66 million (41.2 million)
The net value of investments and cash was KD 169.5 million (598.95 million) as at the end of 2013 with a rise of 15 percent amounting to KD 22.16 million (78.3 million) as compared to 2012
The investment profit and other income reached KD 8.4 million (29.8 million) with a rise of 23.7% amounting to KD 1.6 million (5.7 million) as compared to the last year
The net technical reserves of the Company made a rise by KD 9.6 million by 10.9 percent to reach KD 97.85 million (345.8 million) at the end of 2013 as compared to KD 88.2 million (311.8 million) as of Dec 31, 2012 supporting the operating activities and protecting the rights of policy holders and, hence, enhancing the Group ability to bear the contingent risks that may arise in the future. The total budget reached KD 320.4 million (1.1 billion) as of Dec 31, 2013 with an increment of KD 22.1 million (78 million) at 7.4 percent compared with the year ending Dec 31, 2012
Al Sane's presentation was followed by the Shafafiyah (Transparency) Forum with GIG CEO Khaled Al Hassan at the helm.
"We expect to generate more income and profits with doubled figures in the coming years," he stated. He added that Gulf Insurance will continue with its regional expansion through its access in the Algerian market by acquiring a share of 49% in Algerian Insurance and will double the total subscribed premiums over the next five years to reach 1 billion
"The financial solvency and credit rating reached higher levels. Gulf Insurance Group maintained the rating of (A-) with a stable outlook in Standard & Poor's ratings, being the highest in ratings among Kuwaiti insurance companies," pointed out Al Hassan
The Group and its affiliates maintained the credit rating granted by the global rating company, AM Best
"The Group succeeded to increase the ownership in the Arab Orient Insurance Company (Jordan) to 88.907%," he cited. He outlined that these results reflect the growth achieved by the Group to enhance its ability to protect its assets and its shareholders' rights, and is in line with the company's ongoing efforts to deliver the best insurance products to its customers across all markets it operates in. These achievements, supported by the company's strategy, are aimed at furthering our regional expansion to increase the group's local and regional market shares
"Our results are attributed to the ongoing support of our valued customers and their trust in the Group's management and services. Moreover, we thank our shareholders, particularly, Kuwait Projects Company (Holding) and Fairfax Middle East Company for their continuous support, as well as the devotion and loyalty of the Group's staff to whom I would like to express my gratitude and appreciation," he stated
For 2014, Al Hassan stressed that GIG is bent on maintaining its leadership position and to improve its market share by enhancing the focus on customer's needs. In terms of governance and compliance, he cited that transparency, accountability and fairness are the cornerstones of the GIG corporate culture as it seeks to be in line with the regulatory requirements. He added that they will work continuously to improve career development programs, training programs for GIG employees as well as improve the technical performance of the group through the development of issuance processes and the effective control of claims