Al Ahlia Insurance net hits $5.3m
Manama, March 31, 2010
Al Ahlia Insurance reported a net profit of BD2.01 million ($5.33 million) for last year, against BD236,291 for 2008, it has emerged.
The revelation came during the company's annual general meeting at its head offices in Manama yesterday.
The meeting also approved the financial report for the year ending December 21 last year.
Company deputy chairman Adel Hassan Ali Al Aali said profit from insurance operations for the year stood at BD1.9 million, up from the 2008 profit of BD1.8 million.
'The company's net earned premium for the year grew 12 per cent, to BD5.5 million, against the previous year's figure of BD4.9 million, while its gross premium for the year was BD13.4 million, up from the 2008 premium of BD11.8 million.
'Investment income for 2009 was BD871,677 compared to a loss of BD714,124 for the previous year and earnings per share for the year was 50 fils as against 2008 earnings of six fils.'
Al Aali said total distribution of 40 per cent has been approved by the shareholders, 5 per cent being cash and 35 per cent being bonus shares.
He said the Bahrain market remained soft and competitive during last year owing to availability of excess reinsurance capacity provided by regional reinsurance companies and also because of irrational business practices adopted by new companies.
'Even existing accounts of established companies came under threat from new players as they were able to offer cut-throat rates to acquire market share triggering practically a price war in the market.'
He said, however, as an established player in the market, the company could withstand all this.
'We could retain all our major customers even in the face of tough competition because of our heightened level of customer services.'
He said diversification of their product range as well as their ability to write all classes of business helped them achieve higher growth in certain classes of business like medical and personal lines that could make up for negative growth experienced in certain classes like fire, engineering and marine.
'Though budgeted level of gross growth rates could not be achieved in many classes of business, better underwriting results were there for almost all classes as prudent underwriting methods were implemented scrupulously.'-TradeArabia News Service