BNH plans $21 million expansion
Manama, March 24, 2010
Bahrain National Holding (BNH), the parent company of Bahrain National Insurance and Bahrain National Life Assurance, is looking to invest up to BD8 million ($21.22 million) this year in further expansion.
The company is looking to move into the takaful Sharia-compliant market, though it will remain committed to its core insurance business where it holds about 20 per cent of the market share in Bahrain, according to chief executive Mahmood Al Soufi.
It is likely that it would do this through buying into an existing operation, he said on the sidelines of the company's annual general meeting yesterday.
It also plans further regional expansion on the back of its recent investment in Saudi-based Arabian Shield.
'We began to diversify our operations about four years ago and we will continue this while concentrating on our core business,' he said.
Chairman Farouk Almoayyed said the company registered a net profit of $10.8 million (BD4.1 million), and the shareholders approved 2009's results in the meeting.
The result represents a 10 per cent average return on shareholders' equity, which totalled $106.3 million (BD40.2 million).
In view of the group's continued profitable operations and marked achievements, the board recommended a cash dividend of 20 per cent on paid-up capital, amounting to $5.6 million (BD2.1 million).
'Though the world is still going through a slow economic recovery phase, BNH maintained its focused and prudent risk management and solid governance practices,' said Almoayyed.
'It is the reason behind achieving these rewarding results. We are confident of the group's ability in surpassing the market hardships and its ability to successfully continue with its focused and strategic business plan.'
'We are very proud of the group's performance in 2009, thanks to the business model designed especially to overcome the impact of the global financial crisis,' added Al Soufi.
'The group won three different awards throughout the year recognising its excellence in design and brand, charitable initiatives and advance technologies and services. We will certainly continue our chosen path to continue our success story.'-TradeArabia News Service