Bahrain National Holding Company Group has reported a net profit of BD3.02 million ($8 million) for last year, up 30 per cent over BD2.33 million reported in 2012.

The improved performance was due to growth in premium, strong investment performance, better cost control and lower claims, reported the Gulf Daily News, our sister publication, citing a company statement.

The group's comprehensive income increased to BD4.16 million last year as against BD2.84 million in 2012, it added.

BNH posted a net profit of BD0.67 million for the fourth quarter of last year compared to BD0.91 million for the same period in 2012. The gross premiums grew by 7 per cent to BD24.92 million compared to BD23.31 million in 2012 due to growth in general, motor and medical insurance, it added.

The group registered an increase in its underwriting profit before adjustments for life actuarial reserve of BD1.44 million last year compared to BD1.24 million in 2012.

However, after a charge of BD0.17 million to life actuarial reserve, the net underwriting profit was BD1.27 million compared to BD1.49 million in 2012.

Group investment income increased by 37.2 per cent to BD3.02 million compared to BD2.20 million in 2012, due to an increase in income from portfolio investments, said the report.

The BNH Group's total assets soared to BD83.04 million last year from BD76.74 million in 2012. The group also achieved a return on equity of 6.7 per cent for last year as compared to 5.4 per cent in 2012. Earnings per share has increased from 20.1 fils to 27.8 fils last year.

As for the group's subsidiaries, Bahrain National Insurance achieved a net profit of BD3.47 million, compared to BD2.26 million for the same period last year, whereas Bahrain National Life Insurance recorded a net profit of BD0.16 million compared to BD0.67 million in 2012.

Based on the performance for 2013, the board of directors has recommended a dividend of 18 per cent to shareholders, subject to approval of concerned authorities and the Annual General Meeting.

Group chairman Farouk Almoayyed said he was 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.

"However, given the strong underlying economic fundamentals, we remain optimistic about future outlook for the regional insurance industry, and its potential for growth and increased penetration," he said.-TradeArabia News Service