Bahrain National Holding posts $6m gains
Manama, February 28, 2013
Bahrain National Holding Company (BNH) yesterday announced a consolidated net profit of BD2.33 million ($6.2 million) for 2012, compared with BD3.31 million ($8.77 million) for 2011.
The decrease in net profits is primarily due to higher claims and a slight increase in operational costs, said a report in our sister publication, the Gulf Daily News.
However, the group's comprehensive income increased from BD2.26 million in 2011 to BD2.84 million last year. Net assets increased to BD42.86 million last year compared to BD42.22 million in 2011.
The group registered a decrease in underwriting profit to BD1.49 million last year compared to BD2.23 million in 2011. Net investment income from portfolio was BD1.49 million compared to BD1.59 million for 2011.
The group posted a net profit of BD0.91 million for the fourth quarter of last year compared to BD1.09 million for the same period in 2011.
Bahrain National Insurance, a subsidiary of the group, posted a net profit of BD2.26 million for last year compared to BD2.96 million for 2011.
Bahrain National Life Insurance, another subsidiary, recorded net profit of BD0.67m last year compared to BD0.69 million for the same period in 2011.
Despite market conditions, the group's gross premiums increased by 6.3pc to BD23.31 million.
The group's board has recommended a dividend of 15pc.
Last year proved to be extremely challenging with the predicted global and regional economic upturn failing to materialise and local market conditions remaining volatile, chairman Farouk Almoayyed said.
"Despite this, we achieved a positive performance in 2012. The group has undertaken a number of steps during the year to overcome the challenges posed by the market. We are optimistic that these measures will have a positive impact in the future."
According to BNH chief executive Mahmood Al Soufi, the increasingly competitive nature of the insurance market in Bahrain resulted in a further softening of rates and erosion of margins.
"We expect 2013 to be another challenging year, but we are optimistic in light of various strategic steps the group has taken, that should contribute towards the growth of the revenue and the profitability of the group," Al Soufi said. – TradeArabia News Service