BNH net profits up 39.2% to BD2.91m during H1

Farooq Almoayyed

Manama: Bahrain National Holding Company (BNH) the parent company of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl) has announced a net profit of BD2.91m for the six months ending 30th June 2017 compared to BD2.09m for the same period in 2016, an increase of 39.2%.

The Group’s net profit for the three months ending 30th June 2017 is BD864 thousand as compared to BD671 thousand for the same period of 2016, up by 28.7%. The Group’s gross premiums for the six months ended 30th June 2017 of BD15.37m, higher by 2.5% compared to BD14.99m for the same period last year. Gross premiums for the three months ending 30th June 2017 was BD7.54m, a decrease of 4.1%, compared to BD7.86m recorded for the same period in 2016.

The underwriting profit for the six months ended 30th June 2017 remained steady at BD914 thousand compared BD911 thousand for the same period of last year. The underwriting profit for the three months ending 30th June 2017 was BD339 thousand against BD315 thousand in 2016, an increase of 7.6%.

The investment portfolio produced a strong performance. Investment income, net of impairment and including the share of profit from associates, for the six months ended 30th June 2017 was BD2.85m compared to BD2.04m for 2016, an increase of 39.7%. For the three months ended 2017, the investment income was BD987 thousand as against BD797 thousand for the same period of 2016, an increase of 23.8%.

BNH’s largest subsidiary, Bahrain National Insurance (bni), reported a gross premium of BD12.39m and a net profit of BD1.73m for six months ended 30th June 2017. This compares to a gross premium of BD12.5m and a net profit of BD1.47m for the same period of 2016.

The underwriting profit of bni for the first half of 2017 decreased by 11.9% to BD464 thousand from BD527 thousand over the same period of 2016, whereas investment income net of impairment was BD1.28 m, higher by 34% compared to 2016.

Bahrain National Life Assurance (bnl) reported a net profit of BD340 thousand for the six months ended 30th June 2017 compared to a profit of BD66 thousand in 2016.

Gross premiums were BD2.69m compared to BD2.21m in June 2016, an increase of 21.7%. Investment income net of impairment was recorded BD310 thousand an increase of 121.4% compared to BD140 thousand in 2016.

“The strong performance of the group in a relatively challenging environment is highly satisfying. The ability of the group to maintain underwriting profitability and generate excellent investment results is commendable,” Farouk Almoayyed, Chairman of the Group, said.

“We are pleased with the underwriting performance, where profits have been maintained despite inflation in claims costs and conservative provisioning. We continue our focus on improving our internal processes to deliver quality services to our customers in a cost-effective manner. Our long-term philosophy of investing in associates has generated strong gains, while the performance of our investment portfolio is also creditable,” Mr. Sameer AlWazzan, Chief Executive of BNH, said.

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