Bahrain National Holding Company ‘making progress with digital initiatives’

Net earned premiums in the quarter were $10.7mln

  

MANAMA: Bahrain National Holding Company (BNH) has achieved a net profit of BD1.48 million for the third quarter ended September 2020, a decrease of 17 per cent compared with BD1.78m during the third quarter of the previous year.

Earnings per share during the quarter were 13.1 fils compared to 15.8 fils in the same quarter of the previous year.

Total comprehensive income for the quarter was BD2.63m, compared with BD1.84m during the same period last year, an increase of 43pc.

Net earned premiums in the quarter were BD4.06m, compared with BD4.50m earlier, a decrease of 10pc.

Despite this, underwriting profit was BD1.14m during the quarter, compared with BD861,000 earlier, an increase of 32pc, primarily due to lower claims.

Net investment income after impairment loss fell 44pc to BD551,000 during the quarter, compared with BD990,000 earlier, due to relatively difficult investment market conditions.

For the nine months ended September 2020, the group achieved net profit of BD3.89m, compared with BD4.54m in the same period last year, a decrease of 14pc.

Earnings per share were 34.5 fils compared with 40.3 fils earlier.

Total comprehensive income for the nine months was BD3.53m, compared with BD5.84m during the same period last year, a decrease of 40pc.

The decrease in net profit for the nine months in comparison to the previous year was primarily due to drop in net investment income and lower share of profits of equity accounted investees.

Net earned premiums decreased 5pc to BD12.47m, compared with BD13.18m earlier.

Despite this, underwriting profit was BD3.08m during the nine months compared with BD2.22m earlier, an increase of 38pc.

Net investment income after impairment loss decreased by 27pc to BD1.79m from BD2.46m in the previous period.

Total shareholders’ equity (excluding non-controlling interest) as of end-September 2020 increased by 2pc to BD54.87m compared with BD53.84m as of end-2019.

Total assets reached BD109.75m compared with BD105.83m as of end-2019, with an increase of 4pc.

BNH chairman Farooq Almoayyed said, “After the relatively difficult environment in the first half of 2020 we are pleased with the results and we are also glad that there are initial signs of normalisation in business activities. This is especially reflected in the third-quarter performance on both the insurance subsidiaries as well as some of our associates. As a result of the pandemic, several trends like the shift of processes online have been intensified and our focus is to rapidly adjust and exploit this new environment. The group continues to pay close attention to its liquidity and balance sheet strength, which, we believe, will increasingly become a competitive differentiator.”

BNH chief executive Sameer Al Wazzan said, “We are happy to report strong results in a challenging environment. This has been made possible by our rapid response to the challenges posed by the pandemic. Our gross premium growth was made possible by a resilient performance by all insurance lines. Although motor topline was impacted by the drop in new car sales, that line of business performed creditably in a very competitive environment. The group benefited from lower claims and cost control while investments were understandably impacted by the severe macro-environment, but the portfolio value was well protected despite the volatility in the markets. We are making good progress with our digital initiatives and hope to further enhance the service levels for our customers.”

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