Seef District: Bahrain National Holding (BNH) remained resilient on profitability despite the stiff competition in the market, according to the Chairman of the board.
“BNH Group reported an increase of 26.5 percent in net profits from BD3 million in 2013 to BD3.8 million in 2014. This increase was achieved despite being faced with a challenging and competitive environment, thanks to the guidance of the Board of Directors and the efforts of the management of the Group, Farouq Almoayyed Chairman of the board of directors told the BNH shareholders during the AGM on Tuesday.
“The net underwriting profit increased from BD 2.3 million in 2013 to BD 2.4 million in 2014, a growth of 3.3 percent. Net investment portfolio income went up by 16.9 percent from BD 2.9 million in 2013 to BD 3.4 million in 2014. Total assets increased by 4.9 percent at the end of the year to reach BD 87.7 million compared to BD 83.6 million in 2013. The total shareholders’ equity rose from BD 45.3 million in 2013 to BD 47.8 million in 2014. The basic earnings per share increased from 27.8 Bahraini fils in 2013 to 33.6 Bahraini fils in 2014.
“The growth in underwriting profitability was a result of the Group’s efforts to increase its direct business in Bahrain. The Group has won a number of large businesses in 2014. The medical insurance underwent a turnaround into a profitable line by improving claims control and efficiency. The Group also reviewed some of its underperforming businesses and decided to exit them. This led to lower cost and an increase in the overall profitability of the Group,” the Chairman added.
The Chairman said that there were no plans of expansion in 2015 but the Group would consolidate the operations to reduce the costs and enhance the efficiency. About the compulsory medical insurance he said it was good development but the details from the Government how to implement was yet to be received.
“We are working on establishing kiosks across the Kingdom in addition to the already operational branches to reach out the customer base,” he added.