News Column

BNHs net profit surges 23.2pc to $6.15 million

July 23, 2014

MANAMA: Bahrain National Holding (BNH) has reported 23.2 per cent rise in consolidated net profit at BD2.34 million ($6.15m) for the six months ended June 30 when compared with BD1.90m for the same period last year.

BNH is the parent of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl).

Net profit for the three months ended June 30 was BD0.71m, higher by 8.7pc when compared with BD0.65m for the same period last year.

Gross premiums for the six-month period were up 3.2pc to BD14.15m when compared with the same period last year, while gross premiums for the three-month period saw a decrease of 7.4pc to BD6.75m.

Underwriting profit for the six-month period was BD0.76m as against BD0.53m earlier, while the underwriting profit for the three-month period was BD0.20m as against BD0.01m earlier.

Net investment income after deducting policyholders share of investment income for the six-month period saw an increase of 22.5pc to BD1.67m when compared with BD1.37m earlier.

For the three-month period, the net investment income decreased 8.1pc to BD0.58m as against BD0.63m for the same period last year.

As for the subsidiaries, bni reported a net profit of BD2.04m for the six-month period as against BD1.85m for the same period last year.

Gross premium was BD12.3m compared with BD10.5m last year.

Underwriting profit for the six-month period was BD0.71m as against BD0.66m earlier.

Investment income went up by 12.1pc compared with last year, contributing to growth in net profit this year.

Subsidiary bnl reported higher net profit of BD0.47m for the six-month period as against BD0.13m last year.

Gross premiums saw a decrease of 42.8pc to BD1.84m from BD3.22m in June last year.

Investment income was BD0.43m, an increase of 66.1pc compared with June last year. Profit was higher due to a turnaround in medical insurance as a result of selective underwriting and better claims management.

The group posted a strong overall performance, with improved results in both underwriting and investments, BNH vice-chairman Abdulhussain Dawani said.

These results were achieved despite challenging and highly competitive market conditions.

BNH chief executive Sameer Al Wazzan said the company improved its financial performance, grew core business and enhanced competitive advantage.

The two subsidiaries bni and bnl have done well compared with last year despite the continuation of soft market conditions and increasing competition, he added.

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Source: Gulf Daily News (Bahrain)

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