News
BNH profits up 101% in 2009
| February 18, 2010 by Rob Morris
MASOOD AL SOUFI
Bahraini insurance company sees profits surge as global stock markets recover.
Bahrain National Holding (BNH) Company has bucked the economic downturn after reporting strong profits for 2009.
The Manama-based insurance provider registered a $10.8 million net profit, up 101% from the previous year, after receiving “strong support” from shareholders and clients.
Net earned premium income during the same period was $35.5 million compared with $34.2 million in 2008.
A decline in the company’s investment portfolio prompted BNH to apply an $886 million impairment fee to its profit and loss account during last year’s first quarter. But following an improvement in global stock markets throughout the rest of the year, BNH’s investment income increased 503% to $6.8 million.
Insurance underwriting profits were down 3% from $8.1 million in 2008 to $7.9 million last year. Meanwhile, shareholder equity climbed 4% to $102.3 million compared with 98.6 million in 2008.
“Despite the financial uncertainty the world’s economy has faced in 2009, the group has maintained its strong financial position in the local and regional markets; a testimonial of the group’s prudent underwriting strategy and diversified investment plan,” said BNH chief executive Mahmood Al Soufi. “We will therefore continue to manage our business selectively and be responsive to the market needs.”
