Bahrain National Holding Company (BNH) has reported a 27 per cent increase in consolidated net profit at BD3.8 million ($10.08 million) for last year when compared with BD3 million in 2013.

BNH chairman Farouk Almoayyed said the group posted a strong overall performance, with improved financial results and continued growth in gross premiums, reported the Gulf Daily News (GDN), our sister publication.

“This was due to higher returns on our investment portfolio coupled with steady growth in underwriting profitability.

“The group increased its direct business in Bahrain and won a number of large clients last year despite severe competition,” he said.

The company's medical insurance segment effected a turnaround in profits after improving claims controls and efficiency.

Comprehensive income increased to BD4.6 million last year as against BD4.2 million in 2013.

Investment income increased by 17 per cent to BD3.4 million when compared with BD2.9 million in 2013, due to an increase in income from portfolio investments as well as the increase in the share of profit from associates.

Gross premiums grew by three per cent to BD25.7 million when compared with BD24.9 million in 2013 due to growth in general and motor insurance.

Net underwriting profit was BD2.4 million as against BD2.3 million in 2013.

Total assets increased to BD87.7 million last year as against BD83.6 million in 2013 and return on equity was eight per cent as against 6.7 per cent earlier.

Earnings per share increased from 27.8 fils in 2013 to 33.6 fils last year.

Net profit for the fourth quarter was BD193,000 when compared with BD673,000 for the same period in 2013.

The fall was primarily due to higher claims reported and higher claims reserving in the fourth quarter last year, Almoayyed said.

The board of directors has recommended a dividend of 20 per cent.

The group's subsidiary, Bahrain National Insurance, achieved a net profit of BD3.3 million last year as against BD3.5 million in 2013, while the fourth quarter earnings were BD345,000 as against BD995,000 earlier.

Another subsidiary, Bahrain National Life Insurance, recorded net profit of BD871,000 last year as against BD156,000 in 2013.

For the fourth quarter, the profit was BD139,000 as against a loss of BD69,000 for the same period in 2013.

BNH chief executive Sameer Al Wazzan said 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 the SME business as well.

“Regional investment markets were volatile towards the last quarter, however our prudent and diversified approach helped us to maintain excellent investment returns,” he said.

The chief executive said the associates reported better results and the group has increased its stake in those associate companies with strong long term potential and strategic benefit.

“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. - TradeArabia News Service