“The ongoing policy of keeping the market open from outside the Kingdom is eroding the profitability of the locally incorporated insurance companies and regulators failed to protect the interests of the national companies,” Chairman of the Bahrain National Holding (BNH) Group, Farouk Almoayyed told reporters on the sidelines of the annual general assembly held on Wednesday.
“This is a strange trend in Bahrain as other countries protect their national insurance companies and keeping them afloat,” he said.
“Despite upcoming opportunities including the implementation of the compulsory health insurance in Bahrain, there will be nothing substantial for the local players as bids will remain open for all regional companies as well,” he added.
Bahrain National Holding, the parent company of Bahrain National Insurance and Bahrain National Life Assurance,- held its Annual General Assembly Meeting of shareholders at the BNH Tower in the Seef District on 27th March 2013. Chairman of the Group, Farouk Almoayyed, led the meeting attended by Group’s shareholders, key government representatives and media representatives.
The Group registered a net profit of BD 2.33 million for the financial year ended 31 December 2012. The shareholders equity was BD 42.86 m and the average return on equity was 5.4%.
As for the fourth quarter 2012, the Group posted a net profit of BD 1.76 million compared to BD1.81 million for the same period in 2011.
In light of the group’s positive performance, the shareholders approved the year’s results and the Board’s recommendation of distributing 15% cash dividend paid at 15fils per share for 2012 to shareholders from the Company’s earnings.
“The year 2012 proved to be a challenging one given the uncertainties in the global economic conditions. The group has undertaken a number of initiatives in various operational and strategic areas which should have a positive impact on the group in the future” Almoayyed, said, while commenting on BNH results.
“Given the challenging economic conditions and the intense competition in 2012, our group has posted commendable results. Gross Premiums increased by 6.3% and our Investment Portfolio performed well in 2012. Our diversified and fairly liquid portfolio is a key competitive strength. We are pleased to report a Comprehensive Income of BD 2.84 million, a growth of 25.6% over 2011,” Mahmood Al Soufi, Chief Executive at BNH, said.