Bahrain National Holding Company (BNH – the parent company of Bahrain National Insurance, bni & Bahrain National Life Assurance, bnl) has announced its mid-year financial results for 2012, reporting group net profit of BD 900,000.
The group’s gross premiums increased by 6.5% compared to 2011 while net earned premiums grew by 7.7% compared to 2011. The underwriting profit were lower by 63% compared to 2011, this was mainly on the account of claims as the claims increased by 27.9% compared to 2011. Investment income was lower by 13.5% compared to 2011 and this was due to an impairment made on a certain investment amounting to BD0.1mn in 2012.
The Group Profit for the period was lower by 45.9% compared to 2011 while the Total Assets increased by 3.3% compared to 2011.
As for the subsidiaries, Bahrain National Insurance, bni reported a net profit of BD1.1mn (USD 2.9mn).
Gross Premiums increased by 2.3% compared to 2011 and the net earned premiums grew by 4.3% compared to 2011. The underwriting profit was lower by 45.2% compared to 2011 as claims increased by 30.2% compared to 2011 on the back of higher spare parts and labor costs. Investment income was lower by 28.2% compared to 2011 due to lower profits booked on sale.
The bni profit for the period has been lower by 37.4% compared to 2011, mainly on account of claims and impairment of investments. Total Assets increased by 4.8% compared to 2011.
Bahrain National Life Assurance, bnl, reported a net profit of BD0.04million.
Gross premiums increased by 24.7% compared to 2011 and net earned premiums grew by 17.5% compared to 2011. The underwriting profit was lower as claims increased by 23.5% compared to 2011. Investment income was higher by 46.9% compared to 2011.
“We are very satisfied with the overall performance given challenging conditions in the insurance markets. Gross premium increased significantly compared to 2011 and investment performance was steady. Considering the high claims in motor and medical insurance and fierce competition from local and international companies, the company’s overall performance was good,” Mahmood Al Soufi, Chief Executive of BNH, said.