MANAMA: Bahrain-based BNH Group on Tuesday said that its net profit for the year increased by 30% to BD 3.02 million compared to BD 2.33 million for the same period last year, due to a combination of growth in premium, strong investment performance, better cost control and lower claims.
The Group’s Comprehensive Income increased to BD 4.16 million in 2013 as against BD 2.84 million in 2012. The Group posted a net profit of BD 0.67 million for the fourth quarter of 2013 compared to BD 0.91 million for the same period in 2012.
The Board of Directors of Bahrain National Holding Company is pleased to announce the Group’s consolidated results for the year 2013. The Group posted a strong overall performance, with improved financial results and continued growth in gross premiums.
Gross Premiums grew by 7% to BD 24.92 million compared to BD 23.31 million in 2012 due to growth in General, Motor and Medical insurance. The Group registered an increase in its underwriting profit before adjustments for Life Actuarial Reserve was BD 1.44 million in 2013 compared to BD 1.24 million in 2012. However, after a charge of BD 0.17 million to life actuarial reserve, the net underwriting profit was BD1.27 million compared to BD 1.49 million in 2012. Group investment income increased by 37.2% to BD 3.02 million compared to BD 2.20 million in 2012, due to an increase in Income from portfolio investments.
Group total assets increased to BD 83.04 million in 2013 compared to BD 76.74 million in 2012. The Group has achieved a return on equity of 6.7% for the year 2013 as compared to 5.4% for last year. The earnings per share were up from 20.1 fils to 27.8 fils in 2013.
As for the Group’s subsidiaries, Bahrain National Insurance achieved a net profit of BD 3.47 million, compared to BD 2.26 million for the same period last year, whereas the Bahrain National Life Insurance recorded net profit of BD 0.16 million compared to BD 0.67 million 2012.
In line with our consistent dividends policy and taking into account the performance of the Group for 2013, the Board of Directors is recommending a dividend of 18% to the shareholders, subject to approval of concerned Authorities and the Annual General Meeting.
“I am pleased with the Group’s strong overall performance, improved financial results and continued business growth. Looking ahead, we recognise that 2014 will be another challenging year, with a continuation of soft market conditions and increasing competition,” Farouk Almoayyed, Chairman of the Group, said.
“However, given the strong underlying economic fundamentals, we remain optimistic about the future outlook for the regional insurance industry, and its potential for growth and increased penetration.”