Bahrain National Holding Company (BNH) made a net profit of BD798,000 ($2.12 million) after charging BD234,000 for investment portfolio impairment in the first quarter of this year.

This compares with BD1 million profit during the same period last year.

BNH, the parent company of Bahrain National Insurance and Bahrain National Life Assurance, saw total gross premiums for the period reach BD7.4 million, with net earned premiums of BD3.2 million which is similar to the same period last year.

The underwriting profit was BD804,000 compared to last year's BD799,000 in an encouraging start to the year considering the difficult economic conditions.

'We are pleased that the underwriting profit is similar to last year but investment returns were down to BD403,000 from BD514,000 in 2008,' said chief executive officer Mahmood Al Soufi.

'Additionally, under International Financial Reporting Standards, we have prudently charged our profit and loss account with an impairment charge of BD234,000 as a result of the decline in our investment portfolio.'-TradeArabia News Service