BNH Posts a 27pc Increase in Net profit to BD 3.8 in 2014
Farouk Almoayyed, Chairman of the Group, stated: “I’m pleased on behalf of the Board of Directors to announce an increase of 27% in Net profit for the year to BD 3.8 million compared to BD 3.0 million for the same period in 2013.This was due to higher returns on our investment portfolio coupled with steady growth in underwriting profitability. The Group succeeded in its efforts to increase its direct business in Bahrain and won a number of large businesses in 2014 despite severe competition. The medical insurance segment effected a turnaround in its profits after improving claims controls and efficiency. The Group’s comprehensive income increased to BD 4.6 million in 2014 as against BD 4.2 million in 2013. The Group posted a net profit of BD 193 thousand for the fourth quarter of 2014 compared to BD 673 thousand for the same period in 2013. The fall was primarily due to higher claims reported and higher claims reserving in the fourth quarter of 2014.”
“Gross Premiums grew by 3% to BD 25.7 million compared to BD 24.9 million in 2013 due to growth in General and Motor insurance. The net underwriting profit was BD2.4 million compared to BD 2.3 million in 2013. Group investment income increased by 17% to BD 3.4 million compared to BD 2.9 million in 2013, due to an increase in Income from portfolio investments as well as the increase in the share of profit from associates.”
He also added that the Groups total assets increased to BD 87.7 million in 2014 compared to BD 83.6 million in 2013 and achieved a return on equity of 8% for the year 2014 as compared to 6.7% for last year. The earnings per share has increased from 27.8 fils in 2013 to 33.6 fils in 2014.
In line with the Group’s consistent dividends policy and taking into account the performance in 2014, the Board of Directors is recommending a dividend of 20% to the shareholders, subject to approval of concerned authorities and the shareholders at the Annual General Meeting.
Mr. Sameer Al Wazzan, Chief Executive of BNH said: “The Group’s subsidiaries, Bahrain National Insurance achieved a net profit of BD 3.3 million, compared to BD 3.5 million for the same period last year while the fourth quarter of 2014 earnings for this subsidiary reached to BD 345 thousand compared to BD 995 thousand for the corresponding period of 2013.”
“Whereas the Bahrain National Life Insurance recorded net profit of BD 871 thousand compared to BD 156 thousand in 2013, this subsidiary posted a profits of BD139 thousand in the last quarter of 2014 versus a loss of BD69 thousand for the same period in 2013.”
“The Group made significant progress in its general insurance business while the profitability of the life and medical business improved substantially. Our focused approach helped us to secure large government tenders and corporate businesses while maintaining steady growth in its SME business as well. Regional investment markets were volatile towards the last quarter of 2014, however our prudent and diversified approach helped us to maintain excellent investment returns. Our associates reported better results in 2014 and, we have added to our stake in those associate companies with strong long term potential and strategic benefit to the Group. In the future, we shall continue our focus on improving internal processes and investing in our systems and people in order to improve our product offering and customer services” he added.
ABOUT BAHRAIN NATIONAL HOLDING
BNH, formed in 1998 – a merged company of formerly Bahrain Insurance Company and National Insurance Company– and owner of Bahrain National Insurance Company offers a full fledged range of Insurance and Management of Risk solutions. The Group’s paid-up capital of BD 11.35 million makes it one of the most secure insurance companies in the Gulf region. The Group’s portfolio includes Bahrain National Life Assurance Company along with other associate companies; United Insurance Company (Bahrain), Arabian Shield Cooperative Insurance Company (Saudi Arabia), Al Kindi Specialized Hospital (Bahrain) and National Finance House (Bahrain).