BNH net profit more than doubles to $5m in H1
Manama, August 6, 2013
Bahrain National Holding Company (BNH) earned a net profit of $5 million (BD1.9 million) in the first half of the year, an increase of 110.9 per cent over the $2.4 million it posted for the same period last year.
The group net profit for the second quarter was $1.73 million compared to $0.22 million for the same period of 2012, reported the Gulf Daily News, our sister publication.
"We are happy with the positive results being seen following the strategic initiatives we have taken," said chairman Farouk Almoayyed.
"These results have been achieved against a backdrop of continued intense local and regional competition along with difficult market conditions," he added.
"We are pleased with the continued strong performance of the group both in terms of underwriting and investment activities," said chief executive Mahmoud Al Soufi.
"BNH has a diversified investment portfolio which has enabled it to realise a significant growth in its investment income.
"We will continue to maintain our prudent approach to our underwriting and investment strategy," he added.
The group, the parent company of Bahrain National Insurance and Bahrain National Life Assurance, saw gross premiums for the second quarter at $3.2 million, an increase of 20.2 per cent compared with the same period of last year, while gross premiums for the six months reached $4.5 million, up 14. per cent compared to 2012.
The net earned premiums for the three month period increased by $310,000 or 3.2 per cent, while net earned premiums for the six months increased by $610,000 or 3.3 per cent.
Net claims rose by $290,000 or 4.3 per cent, while for the six-month period they were up by $290,000.
This resulted in an underwriting profit of for the second quarter of $37,000 against a loss of $15,000 for the corresponding period last year .
The underwriting profit for the six months was $1.41m as against a profit of $900,000 in 2012, an increase of 57.7 per cent.
Bahrain National Insurance reported a net profit $4.90 million for the first half. Gross premiums increased by $2.91 million the net earned premiums grew by $650,000.
The underwriting profit was higher by $370,000. Claims increased by $150,000 on the back of higher spare parts and labour costs.
Bahrain National Life Assurance reported a net profit of $330,000 for the first half, higher by $210,000 for the corresponding period. Gross premiums increased by $1.57 million and the underwriting loss was lower by $140,000. – TradeArabia News Service