Bahrain National Holding (BNH) has reported a net profit attributable to shareholders of BHD2.64m ($7.01m), a 37% decrease from the attributable net profit of BHD4.16m achieved during the first half of 2023.
The decrease in the net profit resulted from higher claims incurred in the first half of 2024, due to claims for damage caused by heavy rains that the Kingdom was exposed to and an increase in vehicle and health claims, BNH says in a statement filed with the Bahrain bourse.
For the quarter ended 30 June 2024, BNH chalked up a net profit attributable to shareholders of BHD1.05m, a 56% plunge from the corresponding quarter of the previous year.
The group’s investment income increased by 21% to BHD2.07m and the profit from associates increased by 7% to BHD0.92m. The Group's insurance subsidiaries also achieved significant growth of 30% in insurance revenue.
Mr Farooq Almoayyed, BNH chairman, said, “The region is going through exceptional circumstances that impose challenges on businesses at the local and regional levels. Despite this, the group is still achieving steady and strong growth, the effects of which will be yielded in the final results of the fiscal year, thanks to the balanced financial plan and the strategy of diversifying sources of income that have been adopted since the beginning of this year.”
BNH was formed in 1998 – a merged company of formerly Bahrain Insurance Company and National Insurance Company. The Group’s stable includes Bahrain National Insurance Company, Bahrain National Life Assurance Company, along with other associate companies; United Insurance Company (Bahrain), Health 360° Ancillary Services (Bahrain), Al Kindi Specialised Hospital (Bahrain), and National Finance House (Bahrain).
Highlights of BNH’s financial results for 1H2024:
|
BHD ’000
|
1H2024
|
1H2023
|
Y-oY change
|
|
Insurance revenue
|
26,525
|
20,453
|
29.7%
|
|
Insurance service expenses
|
(23,756)
|
(11,555)
|
105.6%
|
|
Net expenses from reinsurance contracts
|
(947)
|
(5,384)
|
-82.4%
|
|
Insurance service results
|
1,822
|
3,514
|
-48.2%
|
|
Interest income
|
1,448
|
957
|
51.3%
|
|
Other investment income
|
619
|
746
|
-17.0%
|
|
Investment return
|
2,067
|
1,703
|
21.4%
|
|
Net financial result
|
1,984
|
1,439
|
37.9%
|
|
Profit
|
2,839
|
4,269
|
-33.5%
|
|
Profit attributable to parent company
|
2,641
|
4,162
|
-36.5%
|
|
Source: BNH financial statements
|
During the period, BNH completed the purchase of the remaining 25% stake in Bahrain National Life Insurance that it had not already owned. Further, the company received a binding offer on 8 August 2024 for the acquisition of 100% of its wholly-owned subsidiaries, Bahrain National Insurance and Bahrain National Life. The board of directors has accepted the offer and expressed interest in moving on to the next steps in the sale process.