Bahrain National Holding Company (BNH), the parent of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl), has reported that net profit for the first quarter was unchanged year-on-year at BD1.6 million ($4.2 million).

Underwriting profits for the quarter were BD646,000 as against BD751,000 for the same period last year, primarily due to the impact of the new law for motor compensation funds which was implemented in the fourth quarter last year, said a report in the Gulf Daily News (GDN), our sister publication.

Profits were also affected by provisions for further strengthening actuarial claims reserves and also provisions for subrogation and bad debts.

The company registered gross premium of BD8.6m, an increase of 16 per cent compared to BD7.4 million in the same period last year.

However net earned premiums decreased to BD3.4 million in comparison to BD3.5 million for the same period last year. As of March 31, group assets increased to BD89.6 million from BD87.7 million at the end of last year.

Net investment income for the period increased to BD1.4 million compared to BD1.3 million for the same period last year.

"Despite the decrease in oil prices and its effect on the business we are satisfied with the performance, given the additional expenses relating to the provisions and the motor compensation funds," BNH chief executive Sameer Al Wazzan said.

"Our overall profitability remains strong and we hope to build on this momentum in the coming quarters this year.” - TradeArabia News Service