Bahrain-based Al Ahlia Insurance announced a net profit of BD585,065 ($1.6 million) for 2011 during the company's annual ordinary and extra-ordinary general meetings which also approved the financial report for the year.

The net earned premium for the year was BD4,489,909, while the gross premium was BD11,129,762.

It was also declared that the total distribution through bonus shares would be one share for every 11 shares held.

The general body elected a new board of five members for three years.

Deputy chairman Dr Osama Albahrana said the Bahrain market was difficult and competitive during 2011 due to negative business outlook and unsustainable rates adopted by new companies to garner market share.

"However, as an established player in the market, with strong underwriting fundamentals and prompt customer service, our company continues to perform at acceptable levels even during difficult times," he added.

Dr Albahrana said insurance being a long-term business, the company would not resort to short-term practices and would continue to adopt conservative underwriting, strong claims management and balanced investment portfolio strategies in the coming years.

General manger Tawfiq Shehab said the company took a conscious decision to move out of volatile equities and concentrate on fixed income securities in a phased manner.

"Though this decision impacted the profit negatively, the management believes that it will remove the volatility and provide a long-term stable investment outlook," he added. – TradeArabia News Service