Gulf Insurance Group reports a first-half 2023 net profit of $82.5 million

Gulf Insurance Group (GIG) has reported a robust financial performance for the first half of 2023, with a net profit of KD 25.3 million (US$ 82.5 million), equivalent to 89.33 fils per share. This marks a notable increase of 81.7 percent compared to last year, when the company reported KD 13.9 million (US$ 45.4 million), or 49.15 fils per share. The substantial growth of KD 11.4 million (US$ 37.1 million) is attributed to the Group's improved investment performance. Notably, the financial results were prepared in adherence to the new IFRS 17 (Insurance Contracts) standard. The Group meticulously compiled the consolidated financial information for the first half of 2023 and restated the comparison periods following this updated standard.

As of June 30, 2023, shareholder equity stood at KD 229.9 million (US$ 748.3 million), reflecting a slight increase from KD 228.6 million (US$ 744 million) recorded on December 31, 2022. This represents a growth of KD 1.3 million or 0.6 percent. The book value per share also witnessed a positive change, reaching fils 810 compared to fils 804 as of December 31, 2022. The insurance revenue for the first half of 2023 reached KD 390.7 million (US$ 1.3 billion), displaying a 4 percent increase from the KD 375.4 million (US$ 1.2 billion) reported during the same period last year. This growth amounts to KD 15.3 million (US$ 49.9 million). Net investment income witnessed a substantial surge, reaching KD 25.5 million (US$ 83.1 million) for the financial period ending June 30, 2023. This represents a remarkable 84.4 percent increase compared to KD 13.8 million (US$ 45.1 million) recorded for the corresponding period in the previous year. The company's total assets as of June 30, 2023, amounted to KD 1.24 billion (US$ 4.05 billion), marking a significant uptick from KD 1.13 billion (US$ 3.68 billion) reported on December 31, 2022. The increase of KD 113 million (US$ 370.8 million) translates to a growth rate of 10 percent, underscoring the positive trajectory of Gulf Insurance Group's financial performance.

Mr. Khaled Saoud Al Hasan, GIG’s CEO, said, “Our results for the first half of the year reflect the strength of GIG as a group, its continuous growth and 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 endeavour to provide the best insurance services to our valued customers in all markets we operate in (Egypt, Algeria, Turkey, Jordan and GCC), by adopting the necessary strategies to digitally transform our operations in digital distribution of products, digital claims services and other supporting functions.” He added, “We thank our valued customers for these achievements, as well as the unlimited support from our shareholders, namely KIPCO – Kuwait Projects Company (Holding) – and Fairfax Middle East Ltd., as well as all honourable board members of the Group. I would also like to express my sincere appreciation to our dedicated employees for their sincere efforts and all the concerned regulatory authorities in Kuwait.”