Bahrain National Holding (BNH) announces its annual financial results for the second quarter, ended 30th June 2018. The Group achieved a net profit during the second quarter of BD1.33 million, compared to BD864 thousand during the second quarter of the previous year, an increase of 54%. The net profit attributable to the shareholders during second quarter was BD1.24 million, compared to BD816 thousand during the second quarter of previous year, an increase of 52%. The Group achieved net earned premiums in the second quarter of BD4.08 million, compared to BD3.93 million in the second quarter of last year, an increase of 4%. Group reported underwriting profit of BD781 thousand during the second quarter, compared to BD310 in the second quarter of last year, an increase of 152%. Earnings per share during the second quarter were 11.4fils compared to 7.6fils in the second quarter of last year.
The increase in the net profit for the second quarter in comparison to the second quarter of last year relates primarily to increase in net earned premium in medical insurance, higher commissions income in general and life insurance, lower net claims incurred in motor insurance as well as savings in general expenses. Investment income was lower due to lower share of profit from associates, but the impact was partly offset by lower impairment provisions.
For the mid-year ended 30th June 2018, the Group achieved a net profit of BD2.02 million, compared to BD2.91 million in the previous mid-year, a decrease of 31%. Net profit attributable to the shareholders for the mid-year 2018 was BD1.88 million, compared to BD2.82 million during the previous mid-year, a decrease of 33%. The Group reported an increase of 4% in net earned premiums to BD8,03 million, compared to BD7.75 million of last mid-year. Group registered an underwriting loss of BD72 thousand during the mid-year 2018, compared to a profit of BD845 thousand in previous mid-year. Earnings per share was 17.1 fils compared to 26.3 fils in last mid-year.
The total shareholders’ equity (excluding non-controlling interest) as at the June 30th 2018, was BD47.66 million compared to BD47.84 million as at the end of the previous year.
Total assets reached BD94.05 million compared to BD86.31 million as at the end of the previous year, an increase of 9%, primarily due to increase in reinsurers’ share of technical reserves and increase in financial investments.
The decrease in the net profit for the mid-year in comparison to 2017 mid-year relates to increase in net claims incurred in all insurance lines. Motor insurance was impacted by higher claims reserving during the first quarter of 2018. This impact was partly offset by higher commissions in general insurance as well as savings in general and staff costs. Net profits were also lower due to lower share of profits from associates, which was partly offset by higher investment portfolio income as well as lower impairment provisions.
Mr. Abdulhussain Khalil Dawani, Vice Chairman of BNH, commented: “The group has shown a significant improvement in performance in the second quarter of 2018 as claims reserving normalized from the high levels seen in previous quarters. We are particularly pleased with the steady performance of the investment portfolio during this period, supporting the overall group profitability”.
Mr. Sameer AlWazzan, Chief Executive of BNH, commented: “We have carried out a number of initiatives in the claims control and the improvements are beginning to translate into our results in the second quarter. Gross premiums have increased in medical and general insurance while remaining steady in motor and life insurance, despite challenging market conditions. All of this has been achieved on a comparatively lower expense base. We are working on the implementation of a core IT system, which we are confident, will improve customer service and increase our employee productivity”.
The reviewed mid-year financial statements and the press release are available on our website www.bnhgroup.com and the Bahrain Bourse’s website.