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 BD3.16 million for the nine-month period ended 30 September 2016; against BD3.55 million for the same period last year, a decrease of 11% compared to 2015. The Group’s net profit for the three months ended 30th September 2016 declined by 17.5% to BD1.07 million as compared to BD1.30 million for the same period of 2015.The decrease in profits is mainly due to high severity of motor claims.
The Group registered gross premium of BD 21.83 million compared BD 22.44 million for the same period last year, a decrease of 2.7%, whereas gross premiums for the three months ending 30th September 2016 showed a slight increase of 1.5% to BD 6.85 million against BD 6.75 million in 2015. The net earned premium was BD11.53 million for the period in comparison to BD11.00 million for the same period in 2015, an increase of 4.9%. Underwriting profits was at BD1.40 million in comparison to BD1.83 million for the same period in 2015, while the underwriting profits for the three months ending 30th September 2016 registered BD479 thousand, a decline of 58.5% compared to BD1.16 million for the same period last year due to the same reason mentioned above.
The total investment income for the period remained flat at BD3.05 million compared to BD3.00 million for the same period in 2015, while the total investment income for the three months ending 30th September 2016 registered an increase of 81.2% to BD1.01 million compared to BD558 thousand for the same period of 2015.
“The results are in line with the events the region is currently going through but we are confident that the performance will improve for the better towards the end of the year,” Farouk Almoayyed, Chairman of Bahrain National Holding, said.
“The third quarter of this year has seen a significant increase in cost of motor claims and the reason behind this is the increase in prices of spare parts and the high cost of vehicle agency repairs in particular,” Sameer Al Wazzan, Chief Executive of Bahrain National Holding, said.
Total investment income recorded a slight increase despite the difficult regional market conditions and the volatility in oil prices. The management continues to be patient and is focused at this stage on building up cash reserves until we have improved visibility and this is clearly reflected in the third quarter results.
“The financial results highlight the many positive indicators of the Group, notably the increase in the total comprehensive income by 33% and decrease in the group’s expenses from BD 4.42 million to BD 4.35 million. All present indicators point to an improved performance of the group by the end of the year and is in line with the plan approved by the Board for this year.”
