Bahrain National Holding Company (Trading Code: BNH) announced its financial results for the fourth quarter and for the year ended 31st December 2021.
For the fourth quarter ended 31st December 2021, the Group achieved a net profit attributable to the shareholders of BD1.21 million compared to BD1.05 million during the fourth quarter of the previous year, an increase of 15%. The earnings per share for the fourth quarter increased to 10.7 fils compared to earnings per share of 9.3 fils during the same period of 2020. The total comprehensive income attributable to the shareholders for the fourth quarter ended 31st December 2021 decreased by 30% to BD1.68 million, compared to total comprehensive income attributable to the shareholders of BD2.39 million during the same period of 2020.
For the year ended 31st December 2021, the Group achieved a net profit attributable to the shareholders of BD6.39 million, compared to BD4.94 million during the last year, an increase of 29%. Earnings per share increased to 56.7 fils compared to 43.8 fils for the year 2020. The total comprehensive income attributable to the shareholders for the year ended 31st December 2021 increased to BD7.51 million, compared to BD5.92 million during the last year of 2020, an increase of 27%.
The increase in the net profit for the year ended 31st December 2021 compared to the previous year was predominantly attributable to the improvement of underwriting results supported by substantial investment income and a higher share of profits of equity accounted investees.
The total shareholders' equity (excluding non-controlling interest) at the end of the year 2021 was BD62.22 million compared to BD57.25 million as at the end of the previous year, an increase of 9%. The total assets reached BD119.28 million compared to BD110.69 as at the end of the last year, an increase of 8%.
The Group achieved gross insurance premiums in the fourth quarter of BD9.82 million, compared to BD9.23 million in the fourth quarter of last year, increasing 6%. The net earned premiums in the fourth quarter was BD4.66 million, compared to BD4.08 million in the fourth quarter of last year, an increase of 14%. The Group achieved a net underwriting profit of BD582 thousand during the fourth quarter, compared to BD527 thousand in the same period of 2020. Net investment income after impairment loss increased by 35% to BD813 thousand during the fourth quarter, compared to BD601 thousand in the fourth quarter of the previous year. The Group's share of profits of equity accounted investees decreased by 25% to BD379 thousand during the fourth quarter, compared to BD503 thousand in the fourth quarter of the previous year.
Gross premiums grew by 9% to BD39.86 million compared to BD36.70 million in 2020. Net earned premium also increased by 9% to BD17.98 million, compared to BD16.55 million last year. Net underwriting profits showed a marked improvement to BD4.14 million during the year 2021, compared to BD3.60 million previous year, an increase of 15%. The net investment income after impairment losses grew by 26% to BD3.01 million compared to BD2.39 million in 2020. The Group's share of profits of equity accounted investees increased by 32% to BD1.49 million, compared to BD1.02 million in the previous year.
In view of the strong performance in 2021, and after considering the Group's future requirements, the board of directors is pleased to recommend an annual cash dividend of 30% subject to shareholders’ approval at the Annual General Meeting, compared to the approved dividend of 22% in 2020.
Mr. Farouk Almoayyed, Chairman of Bahrain National Holding, commented: "We are pleased to announce a record profit for the Group in the Financial Year 2021, as both underwriting and investments performed strongly during the year and the profitability of our associates has mostly recovered from the pandemic impact. On the other hand, Investment markets appear to be undergoing a significant shift, and we are preparing for the volatility this implies. Bahrain and the regional economies have a relative advantage due to recent oil price strength and various fiscal and policy measures taken in the past 2 to 3 years. We are in a strong position to benefit from the recovering economic activity. "
Mr. Sameer AlWazzan, Chief Executive of BNH, commented: " It is a matter of pride for the Group and its employees that we have overtaken the Financial Year 2020 profits, which was itself a record, in the Financial Year 2021. Among the major initiatives during the year was the launch of new products like the Electric Vehicle insurance and the go live of the core IT system. We are working closely with our partners on the digitalization front resulting in enhanced services for our customers in the coming year. We are also working towards a smooth transition into the IFRS17 accounting standards by 2023. Another significant initiative taken by the Group was the formation of a dedicated Environmental, Social, and Governance (ESG) Committee with the aim of fully incorporating sustainability practices into the Group’s strategy and decision-making processes. We recognize that human capital and IT will be the critical determinant of the quality of our services to our customers and are therefore increasing our investments on this front. We look forward to 2022 with cautious optimism. "