29.02.2016, 09:09
BNH posts a 10pc increase in Net profit to BD4.2 million in 2015, the highest since 2007
OREANDA-NEWS. The Board of Directors of Bahrain National Holding Company announced the Group’s consolidated results for the year, 2015. The Group reported strong overall performance, with continued growth in gross premiums and net profit.
Farouk Almoayyed, Chairman of the Group, stated: “On behalf of the Board of Directors, I am pleased to announce a Net profit of BD 4.2 million for the year 2015 compared to BD 3.8 million in 2014, an increase of 10% and is the highest net profit since 2007. Apart from the steady performance of insurance and investment operations, the growth can be attributed to the positive results from our associate companies, which saw profits increase from BD1 million in 2014 to BD1.5 million in 2015, an impressive 53% growth. The Group posted a net profit of BD 655 thousand for the fourth quarter of 2015 compared to BD193 thousand for the same period in 2014. This was primarily due to strong growth in both underwriting and investment income.”
“The gross premiums registered a healthy increase, from BD25.7 million in 2014 to BD28.4 million in 2015, a growth of 10.4%. Expenses increased, primarily due to regulatory motor accident levy, higher reserving and acquisition costs, and the consolidation of iAssist, which became a subsidiary after purchase of remaining 50% stake in 2015. These cost increases resulted in a marginal decline in net underwriting profit, from BD2.4 million to BD2.3 million. Group investment income decreased 14% from BD2.4 million in 2014 to BD2.1 million due to difficult investment market conditions.”
The Chairman also added that the Group has strong liquidity with cash and balances with banks of BD 10.9 million in 2015 compared to BD 9.2 million in 2014. The return on equity improved to 8.8% for the year 2015 as compared to 8% for the year 2014. The earnings per share increased by 10% from 33.6 fils in 2014 to 37.8 fils in 2015.
In line with the Group’s consistent dividend policy and taking into account the performance in 2015, the Board of Directors is recommending a dividend of 20% to the shareholders, subject to approval of concerned authorities and the shareholders at the Annual General Meeting.
Mr. Sameer Al Wazzan, Chief Executive of BNH said: “The Group’s general insurance subsidiary, Bahrain National Insurance, achieved a net profit of BD 3.3 million for 2015, which was in line with profit achieved in 2014. For the fourth quarter 2015, bni reported Net Profit of BD 497 thousand compared to BD 98 thousand for the corresponding period of 2014. Despite additional provisions for levy, subrogation receivables and claims reserving, the underwriting profit was higher in the last quarter of 2015 compared to same period of 2014. This, combined with sharply higher investment income, resulted in a strong performance in the fourth quarter of 2015.”
“Bahrain National Life Insurance recorded a net profit of BD 620 thousand compared to BD 870 thousand in 2014. For the fourth quarter 2015, bnl reported Net Profit of BD 72 thousand compared to BD 138 thousand for the corresponding period of 2014. Although underwriting profits grew from BD 110 thousand in the fourth quarter, 2014 to BD 129 thousand in same period of 2015, this growth was more than offset by poor global market conditions which affected investment income.”
“Despite challenging conditions in both insurance and investments, BNH managed significant growth. During the year, the insurance subsidiaries worked on introducing innovative new products, reviewing and improving the process and efficiency of service delivery and growing their networks. From an economic and investment point of view, 2016 will not be an easy year, but we look forward to the challenge and reaffirm our commitment to our stakeholders to expend our best efforts to continue to lead the market.” he added.
ABOUT BAHRAIN NATIONAL HOLDING
BNH, formed in 1998 – a merged company of formerly Bahrain Insurance Company and National Insurance Company– and owner of Bahrain National Insurance Company offers a full fledged range of Insurance and Management of Risk solutions. The Group’s paidup capital of BD 11.35 million makes it one of the most secure insurance companies in the Gulf region. The Group’s portfolio includes Bahrain National Life Assurance Company along with other associate companies; United Insurance Company (Bahrain), Arabian Shield Cooperative Insurance Company (Saudi Arabia), Al Kindi Specialized Hospital (Bahrain) and National Finance House (Bahrain).
Farouk Almoayyed, Chairman of the Group, stated: “On behalf of the Board of Directors, I am pleased to announce a Net profit of BD 4.2 million for the year 2015 compared to BD 3.8 million in 2014, an increase of 10% and is the highest net profit since 2007. Apart from the steady performance of insurance and investment operations, the growth can be attributed to the positive results from our associate companies, which saw profits increase from BD1 million in 2014 to BD1.5 million in 2015, an impressive 53% growth. The Group posted a net profit of BD 655 thousand for the fourth quarter of 2015 compared to BD193 thousand for the same period in 2014. This was primarily due to strong growth in both underwriting and investment income.”
“The gross premiums registered a healthy increase, from BD25.7 million in 2014 to BD28.4 million in 2015, a growth of 10.4%. Expenses increased, primarily due to regulatory motor accident levy, higher reserving and acquisition costs, and the consolidation of iAssist, which became a subsidiary after purchase of remaining 50% stake in 2015. These cost increases resulted in a marginal decline in net underwriting profit, from BD2.4 million to BD2.3 million. Group investment income decreased 14% from BD2.4 million in 2014 to BD2.1 million due to difficult investment market conditions.”
The Chairman also added that the Group has strong liquidity with cash and balances with banks of BD 10.9 million in 2015 compared to BD 9.2 million in 2014. The return on equity improved to 8.8% for the year 2015 as compared to 8% for the year 2014. The earnings per share increased by 10% from 33.6 fils in 2014 to 37.8 fils in 2015.
In line with the Group’s consistent dividend policy and taking into account the performance in 2015, the Board of Directors is recommending a dividend of 20% to the shareholders, subject to approval of concerned authorities and the shareholders at the Annual General Meeting.
Mr. Sameer Al Wazzan, Chief Executive of BNH said: “The Group’s general insurance subsidiary, Bahrain National Insurance, achieved a net profit of BD 3.3 million for 2015, which was in line with profit achieved in 2014. For the fourth quarter 2015, bni reported Net Profit of BD 497 thousand compared to BD 98 thousand for the corresponding period of 2014. Despite additional provisions for levy, subrogation receivables and claims reserving, the underwriting profit was higher in the last quarter of 2015 compared to same period of 2014. This, combined with sharply higher investment income, resulted in a strong performance in the fourth quarter of 2015.”
“Bahrain National Life Insurance recorded a net profit of BD 620 thousand compared to BD 870 thousand in 2014. For the fourth quarter 2015, bnl reported Net Profit of BD 72 thousand compared to BD 138 thousand for the corresponding period of 2014. Although underwriting profits grew from BD 110 thousand in the fourth quarter, 2014 to BD 129 thousand in same period of 2015, this growth was more than offset by poor global market conditions which affected investment income.”
“Despite challenging conditions in both insurance and investments, BNH managed significant growth. During the year, the insurance subsidiaries worked on introducing innovative new products, reviewing and improving the process and efficiency of service delivery and growing their networks. From an economic and investment point of view, 2016 will not be an easy year, but we look forward to the challenge and reaffirm our commitment to our stakeholders to expend our best efforts to continue to lead the market.” he added.
ABOUT BAHRAIN NATIONAL HOLDING
BNH, formed in 1998 – a merged company of formerly Bahrain Insurance Company and National Insurance Company– and owner of Bahrain National Insurance Company offers a full fledged range of Insurance and Management of Risk solutions. The Group’s paidup capital of BD 11.35 million makes it one of the most secure insurance companies in the Gulf region. The Group’s portfolio includes Bahrain National Life Assurance Company along with other associate companies; United Insurance Company (Bahrain), Arabian Shield Cooperative Insurance Company (Saudi Arabia), Al Kindi Specialized Hospital (Bahrain) and National Finance House (Bahrain).
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