The group net profit for the three months ending 30th June 2013 is BD650000 compared to BD80000 for the same period of 2012 up by 697.6% compared by 2012.
“We are happy with the positive results being seen following the strategic initiatives we have taken. These results have been achieved against a backdrop of continued intense local and regional competition along with difficult market conditions,” Farouk Almoayyed, Chairman of BNH, said.
“We are pleased with the continued strong performance of the Group both in terms of underwriting and investment activities. BNH has a diversified investment portfolio which has enabled it to realize a significant growth in its investment income. We will continue to maintain our prudent approach to our underwriting and investment strategy,” Mahmood Al Soufi, Chief Executive of BNH, said.
The Group’s gross premiums for the three months ended 30th June 2013 increased by BD1.2million, an increase of 20.2% compared to the same period of last year, while gross premiums for the six months ending 30th June 2013 increased by BD1.7million, an increase of 14% compared to 2012. The net earned premiums for the three month period increased by BD0.12million, increase of 3.2% compared to same period 2012, while net earned premiums for the six months ending 30th June 2013 increased by BD 0.23million increase of 3.3% compared to 2012. The net claims increased by BD 0.11million, increase of 4.3% compared to the three month ended June 2012 while the net claims for the six months ending 30th June 2013 increased by BD0.11million increase of 2.3% compared to 2012. This resulted in an underwriting profit of BD 0.014million for three months ended 30th June 2013, compared to a loss of BD 0.015million for the same period in 2012, while the underwriting profit for the six months ending 30th June 2013 was BD0.53million as against a profit of BD 0.34million in 2012 increase of 57.7% compared to 2012.
The net investment income for the three months ended 30 June 2013 after adjusting for policy holders share was BD0.63million compared to BD 0.17million for 2012 increase of 260.9% compared to 2012 and for the six month ended 2013, the net investment income was BD 1.37million as against BD0.69million for the same period of 2012 increase of 98.8%. The investment portfolio performed well as a result of strong performance by regional equity market and also due to receipt of higher dividend income in 2013.
As for the subsidiaries, Bahrain National Insurance, bni reported a net profit of BD 1.85million for the six months ended 30th June 2013. bni profit for the period has been higher by 67.5% compared to June 2012, mainly on account of higher net earned premiums and higher investments income.
Gross Premiums increased by BD 1.10million increase of 11.7% compared to June 2012 and the net earned premiums grew by BD 0.25million an increase of 4.9% compared to June 2012. The underwriting profit was higher by BD 0.1million increase of 26.7% compared to June 2012. Claims increased by BD 0.06million increase of 1.8% compared to June 2012 on the back of higher spare parts and labour costs.
Bahrain National Life Assurance, bnl, reported a net profit of BD 0.13million for six months ended 30th June 2013. The bnl profit for the period was higher by BD 0.08million compared to June 2012.
Gross premiums increased by BD 0.59million increase of 22.4% compared to June 2012. The underwriting loss was lower by BD 0.054million compared to June 2012 lower by 29%. Investment income was higher by 0.03million increase of 11% compared to June 2012 after transferring to policy holder fund.