Bahrain National Holding Company announces 61% increase in net profit

MANAMA: Bahrain National Holding Company, the parent of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl), has achieved a net profit of BD1.89 million for the first quarter of 2021, compared to BD1.17m during the first quarter of the previous year, an increase of 61 per cent.

Earnings per share during the first quarter were 16.7 fils compared to 10.4 fils in the first quarter of the previous year.

The total comprehensive income for the quarter was BD1.47m compared to loss of BD1.77m during the previous period of last year.

The group achieved net earned premiums of BD4.40m in Q1-2021 compared to BD4.28m in the first quarter of 2020, an increase of 3pc.

The group reported underwriting profit of BD1.08m during the first quarter, compared to BD872,000 in the first quarter of the previous year, an increase of 24pc.

Net investment income after impairment loss increased by 48pc to BD979,000 during the first quarter, compared to BD663,000 in the first quarter of the previous year.

The increase in net profit for the three months period in comparison to the same period of the previous year was primarily due to the significant improvement in underwriting profits and strong investment income.

Total shareholders’ equity (excluding non-controlling interest) as of the quarter ended March 2021 decreased by 2pc to BD56.08m compared to BD57.25m as of end-2020.

Total assets reached BD113.96m compared to BD110.69m as of end-2020, with an increase of 3pc.

BNH chairman Farooq Almoayyed commented: “We are pleased with the strong performance of the group, particularly the improvement in the performance of our associates compared to previous year. The group has successfully grown its topline as well as underwriting profits, in a competitive

environment. Supportive market conditions have also helped the group improve on its portfolio investment performance.”

BNH chief executive Sameer AlWazzan said: “The group achieved and a significant increase in profits in the first quarter of 2021. This reflects the dedication of the board of directors and the group’s employees despite the exceptional circumstances and challenges imposed by the pandemic. It also reflects our commitment in achieving the strategy set by the board of directors.”

He added: “The upgrade of the core system underwriting modules has been completed, and this will be the foundation for further digitalisation, enabling the group to develop many of its products and services.

“We are sure that 2021 will be a good year in terms of technical results and investments, which would allow us to offer more innovative digital services in the near future to meet the requirements of our valued customers,” said Mr AlWazzan.

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