GIG posts KD 14.09 mln net profit for 2015 – General Assembly approves cash dividend of 40 fils per share

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KUWAIT CITY, March 28: The Gulf Insurance Group (GIG) Monday held its 54th ordinary general assembly meeting, announcing that it achieved a net profit of KD 14.09 million which amounts to 78.60 fils per share for the year ended December 31, 2015. The quantum of profit reflects a double digit growth of 17% compared to the KD 12.0 million profit for the same period last year.

In view of the profit made, a cash dividend of 40% (40 fils per share) was directed by the General Assembly for payment for the year ended Dec 31, 2015 to the registered shareholders in the company’s records on the day of the General Assembly subject to the approval of concerned regulatory authorities.

After the completion of the General Assembly, the group held its Shafafiyah forum, during which they presented a review for 2015 results and 2016 outlook to shareholders, financial analysts and investors.

In his comments on the group results for 2015, GIG’s Group Chief Executive Officer Khaled Saoud Al Hasan said that despite the challenges facing the insurance industry in the Middle East and the difficult economic and political conditions of the Arabian countries that the group is operating in, GIG was able to achieve good results supported with double digit growth in revenue, underwriting results and net profit and the group successfully maintained its leading position in terms of the gross written premiums in Kuwait, Bahrain, Jordan and Egypt.

Al-Hasan added that in 2015, AM Best affirmed GIG’s rating at A-(Excellent)/Positive outlook and GIG is rated BBB+/Stable outlook by S&P after restructuring the group position. On the other hand, the group’s subsidiaries in Kuwait and Bahrain successfully maintained A- from AM Best as well as the group’s subsidiaries in Egypt and Jordan maintaining B++ by AM Best.

In conclusion, Al Hasan stated that the group successfully finalized the process of acquiring majority stake in 2A and the group completed all the arrangements and recruitments to establish AGLIC. Thus, the group has strengthened its position in the Algerian Insurance market place and the reflection of their operating results will be added to the group’s operations during 2016.

This achievement has been done with the support of KIPCO-Kuwait Projects Company and Fairfax Financial Holding Ltd which he said he would like to thank all of them for their permanent support and cooperation.

Commenting on the group’s outlook for 2016, Khaled  Al Hasan, as an addendum to the conclusion, said the group is working extensively to meet customers’ needs and requirements, exceed their expectations, and maintain the group’s leadership position in the key markets it operates in. “We will continue, through perseverance and commitment to excel and work towards improving our position across the Arab Insurance sector, achieve solid and persistent growth rates in the coming years and preserve the interest of our shareholders, customers, and employees.

Moreover, GIG will continue to seek the best investment opportunities to widen its expansion regionally, invest in the human resources to enhance and refine the technical and administrative expertise of the group’s staff.

Develop marketing plans and campaigns and promote distribution channels and sales with an overall objective of improving the good standing, brand and reputation of the group, maximize the shareholders’ value and protect the policyholders’ rights while also improving the credit rating for the group.

GIG will continue to implement and develop corporate governance and transparency and to respect the principles of moral work, legislation and control regimes in all of the group’s companies as well as continuing to improve its internal and external network and use modern and latest technology to develop its operations”.

The CEO extended his sincere thanks to the entire group’s clients, shareholders, employees, reinsurers and insurance brokers as well as official regulators on the continued trust and cooperation with the group, asking Allah to shower Kuwait with the blessing of security, safety and prosperity under the wisdom of Kuwait’s leaders.

By Iddris Seidu – Arab Times Staff

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