Bahrain: Listed insurers saw combined profit surge by 44% in 9M2019
Source: Middle East Insurance Review | Jan 2020
The five (re)insurers listed on the Bahrain Bourse achieved a combined profit of BHD11.4m ($30.3m) for the first nine months of 2019, surging by 44.3%, compared to BHD7.9m for the corresponding period in 2018.
The financial results of the five listed insurers for the first three quarters of the year are summarised in Table 1.
Bahrain National Holding, which posted the largest profits among the five companies, attributed the increase in net profit for in 9M2019 to lower net claims incurred in motor insurance and higher income from the investment portfolio. Lower claims led the company to report an underwriting profit of BHD2.22m during the nine-month period, compared to BHD456,000 in the corresponding period of 2018, an increase of 388%. Net Investment income after impairment loss grew by 26% to BHD2.46m for 9M2019.
Bahrain Kuwait Insurance was the only one among the five companies to post lower net profit for the first three quarters of 2019. The company attributed the decrease in net profit to a one-time provision of BHD434,000 for the VAT on unearned premiums as well as BHD570,000 in incurred but not reported losses.
There are 36 insurers operating in Bahrain, of which 24 are locally incorporated. Out of these 24, five are listed on the bourse. M
BHD1 = $2.66