The group achieved net earned premiums in the quarter of BD4.31m, compared with BD4.37m in the fourth quarter of the previous year, a decrease of 1pc.
It has reported net underwriting loss of BD168,000 during the fourth quarter, compared with underwriting profit of BD268,000 in the fourth quarter 2018.
The drop in net profit for the quarter relates primarily to higher claims incurred, which was partially offset by higher investment income.
For the year ended December 2019, the group achieved a net profit attributable to the shareholders of the company of BD4.79m, compared with BD3.28m during the previous year, an increase of 46pc.
Net profit for the year was BD5.03m, compared with BD3.49m in 2018, an increase of 44pc.
As a result, earnings per share were 42.6 fils compared with 29.4 fils for 2018.
Total comprehensive income for the year grew to BD6.71m, compared with BD2.62m during the previous year, an increase of 156pc.
Gross premiums grew by 1pc to BD33.8m compared with BD33.58m in 2018.
Net earned premium increased by 5pc to BD17.49m, compared with BD16.7m in 2018.
Net underwriting profits showed a marked improvement to BD2.06m during 2019 compared with BD724,000 in 2018, an increase of 184pc.
Net investment income after impairment losses grew by 33pc to BD3.01m compared with BD2.27m in 2018.
The increase in net profit for 2019 in comparison with 2018 can be primarily attributed to higher net earned premiums, lower net claims incurred and strong growth in investment income.
Total shareholders’ equity (excluding non-controlling interest) as of end-2019 was BD53.84m compared with BD48.85m as of end-2018, an increase of 10pc.
Total assets reached BD105.83m compared with BD94.38m as of end-2018, an increase of 12pc.
In view of the strong performance in 2019, and after taking into consideration the group’s future requirements, the board of directors has recommended an annual cash dividend of 22pc compared with 15pc in 2018.
Chairman Farouk Almoayyed commented: “I am pleased to report to our shareholders that the group has recorded the highest net profit for the past 10 years in 2019. This performance is even more creditable, as it has been achieved against a backdrop of rising costs as well as challenging and highly competitive insurance market conditions. Investment market conditions were positive in 2019, giving us the opportunity to grow portfolio income and value.”
Chief executive Sameer Al Wazzan said, “It is always rewarding to see the results of the continuous efforts of our employees over the past few years, reflecting positively on the profits of the group. We take special pride in our local knowledge and strong presence in both corporate and retail markets. Our primary focus in 2020 will be on the phased roll out of our core IT system. This will be critical to enhancing our services and digital offerings to ensure the continued loyalty and support of our customers.”
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