Manama:- Bahrain National Holding Company (BNH) – the parent company of Bahrain National Insurance (bni) & Bahrain National Life Assurance (bnl) –has announced a Group Net Profit of BD2.46m for the six months ending 30th June 2014 compared to BD2.34m for the same period in 2014, up by 5.2% compared to 2014.
The Group Net Profit for the three months ending 30th June 2014 is BD0.83m as compared to BD0.71m for the same period of 2014, up 16.6% compared to 2014.
The Group’s reported Gross Premiums for the Six months ended 30th June 2014 of BD 16.15m an increase of 14.1% compared to the same period of last year, while Gross Premiums for the three months ending 30th June 2015 was BD 7.43m, an increase of 10.2% compared to 2014.
The Underwriting Profit for the Six months ended 30th June 2015 was BD0.88m compared BD1.15m to the same period of last year. The decrease was primarily due to the combined impact of the motor insurance levy as per new Law No (61) which was implemented in the 4th quarter of 2014, provisions for further strengthening actuarial reserves and provisions for motor subrogation receivables. The underwriting profit for the three months ending 30th June 2015 was BD0.20m as against a profit of BD0.39m in 2014.
The Net Investment Income after deducting policy holders share of investment income, for the Six months ended 30 June 2015 was BD2.44m compared to BD2.12m for 2014, an increase of 15.0% compared to 2014. For the three month ended 2014, the net investment income was BD1.05m as against BD0.81m for the same period of 2014 increase of 30.1%.
The group’s cost, for the six month period ending June 30th 2015 was higher than same period 2014, partly due to the impact of consolidating, iAssist WLL, after purchase of remaining 50% stake in this year.
As for the insurance subsidiaries, Bahrain National Insurance (bni) reported a net profit of BD1.79m for the six months ended 30th June 2015 against BD 2.04m for the same period of 2014. The gross premium was BD11.94m compared to BD12.32m in 2014. The underwriting profit for the six months ended 30th June 2014 was BD 0.33m compared to BD0.71m over the same period of 2014. Investment income was BD1.46 up by 10% compared to 2014.
Bahrain National Life Assurance (bnl) reported a net profit of BD0.46m for six months ended 30th June 2015 compared to BD0.0.47m in 2014.
Gross premiums were BD4m compared to BD1.84m in June 2014, an increase of 118%. Investment income was recorded at BD 0.43m a decrease of 31.4% compared to June BD0.62m in 2014. The Underwriting Profit was BD0.16m, higher by 236% compared to BD0.05m in 2014 due to improved performance in both medical and life segments.
Mr. Farouk Almoayyed, Chairman of BNH, commented: I am pleased with the strong overall performance, with improved performance in core underwriting and investments. These results were achieved despite the additional levy and conservative provisions taken in the insurance business, and challenging investment markets as a result of lower oil prices.
Mr. Sameer AlWazzan, Chief Executive of BNH, commented: The good results are the outcome of the efforts of our employees and our long term strategy. This is reflected in the group's investment performance and the steady growth in the insurance portfolio. We shall continue to focus on the quality of our services to clients, and strive to strengthen our competitive position. The improved core underwriting performance of the Group's subsidiaries; Bahrain National Insurance Company National, Bahrain National Life Assurance as well as our Associates during the year compared to 2014, was the key driver of our performance.