The net profits of insurance companies operating in Bahrain fell by 43.5% to BHD15.78m ($41.87m) in the first half of 2024, compared to BHD27.91m in the corresponding period of 2023, according to the "Insurance Market Review June 2024", released by the Central Bank of Bahrain earlier this month.
The insurance industry’s profits plunged in 1H2024 despite an increase in gross written premiums. The decline is attributed to the impact of operational challenges and increased costs.
The following table summarises the net results of the various types of insurers in Bahrain:
|
Net financial results in BHD m
|
Bahraini insurers
|
Overseas insurers
|
Total
|
|
Conventional
|
Takaful
|
|
1H24
|
1H23
|
1H24
|
1H23
|
1H24
|
1H23
|
1H24
|
1H23
|
|
Gross premiums/contributions
|
303.1
|
277.6
|
49.3
|
49.2
|
24.0
|
21.7
|
376.4
|
348.5
|
|
Net premiums/contributions
|
208.3
|
203.3
|
31.9
|
31.0
|
14.0
|
13.8
|
254.2
|
248.1
|
|
Underwriting result
|
-26.9
|
-9.2
|
-1.2
|
-0.8
|
0.7
|
0.4
|
-27.4
|
-9.6
|
|
Net investment income
|
42.8
|
37.6
|
1.1
|
0.8
|
1.3
|
1.0
|
45.2
|
39.4
|
|
Net profit/loss
|
13.7
|
26.5
|
|
|
2.1
|
1.4
|
15.8
|
27.9
|
|
Takaful net income
|
|
|
Deficit of takaful funds
|
|
|
-0.1
|
-0.02
|
|
|
|
|
|
Profits for shareholders’ fund
|
|
|
3.3
|
3.0
|
|
|
|
|
|
Results include Bahrain and non-Bahrain business
|
Despite the increase in total written premiums for all companies operating in the Kingdom, including conventional and takaful companies, to BHD376.4m in 1H2024, an increase of 8% over the corresponding half last year, the increase in operating costs and losses affected net profits.
Although investment returns improved by 14.9% year on year to reach BHD45.2m in the first six months of this year, these returns were not enough to compensate for the significant decline in operating profits.