BNH net profit surges 5.2pc to $6.5 million

09/08/2015 08:31 AST

Manama: Bahrain National Holding Company (BNH), the parent company of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl), has registered a group net profit of BD2.46 million ($6.5m) for the six months ending June 30, an increase of 5.2 per cent compared with BD2.34m for the same period in 2014.

The group net profit for the three months ending June 30 is BD0.83m compared with BD0.71m for the same period of 2014, up 16.6pc.

The group's gross premiums for the six months increased 14.1pc to BD16.15m compared with the same period of last year. Gross premiums for the three months ending June 30 was BD7.43m, an increase of 10.2pc compared with 2014.

The underwriting profit for the first half of this year was BD0.88m compared with BD1.15m for the same period last year.

The decrease was primarily due to the combined impact of the motor insurance levy as per new law which was implemented in the fourth quarter last year, provisions for further strengthening actuarial reserves and provisions for motor subrogation receivables.

The underwriting profit for the second quarter was BD0.20m as against a profit of BD0.39m in 2014.

The net investment income after deducting policy holders share of investment income, for the first half was BD2.44m compared with BD2.12m for the same period in 2014, an increase of 15pc. For the second quarter, the net investment income was BD1.05m as against BD0.81m for the same period of 2014, an increase of 30.1pc.

The group's cost in the first half was higher than same period last year, partly due to the impact of consolidating, iAssist WLL, after purchase of remaining 50pc stake this year.

Subsidiary bni reported a net profit of BD1.79m for the six months ended June 30 against BD2.04m for the same period of 2014. The gross premium was BD11.94m compared with BD12.32m in 2014. The underwriting profit was BD0.33m compared with BD0.71m over the same period of 2014. Investment income was BD1.46m, up by 10pc compared with 2014.

Bahrain National Life Assurance reported a net profit of BD0.46m during the first half, compared with BD0.47m in 2014.

Gross premiums were BD4m compared with BD1.84m in the first half last year, an increase of 118pc. Investment income was BD0.43m, a decrease of 31.4pc compared with BD0.62m in 2014. The underwriting profit was BD0.16m, higher by 236pc compared with BD0.05m in 2014 due to improved performance in both medical and life segments. "I am pleased with the strong overall performance, with improved performance in core underwriting and investments. These results were achieved despite the additional levy and conservative provisions taken in the insurance business, and challenging investment markets as a result of lower oil prices," BNH chairman Farouk Almoayyed said.

"The good results are the outcome of the efforts of our employees and our long-term strategy. This is reflected in the group's investment performance and the steady growth in the insurance portfolio. We shall continue to focus on the quality of our services to clients, and strive to strengthen our competitive position. The improved core underwriting performance of the group's subsidiaries as well as our associates during the year was the key driver of our performance," BNH chief executive Sameer Al Wazzan said.

Gulf Daily News