Bahraini insurance group reports higher profits in 2000
The Bahrain National Holding Company, which includes the Bahrain National Insurance and the Bahrain National Life Assurance Co., announced that profits in 2000 stood at 1.86 million dinars, 7.5 percent more than in 1999.
As a result of the improved earnings, the group stated, it would be raising its cash dividend by one percentage point to 15 percent, resulting in a total payout of 1.23 million dinars—7 percent higher than in 1999. Net income surged 15.7 percent to 1.56 million dinars.
According to the group, gross premiums from general and life insurance fell 6.6 percent to 9.9 million dinars, mainly as a result of non-renewable policies issued in 1999. However, total insurance revenue increased by 6.5 percent.
Underwriting profits from general and life insurance equaled 648,802 dinars, down from 729,746 dinars in 1999. The group attributed the fall to higher claim values.
Commenting on the results, Group Chairman Qassim Mohammed Fakhro said that, despite the improved profits, the year 2000 was difficult for the insurance industry in Bahrain. While the soft international market and local competition kept premium rates low, the industry was heavily affected by the severe storm that struck Bahrain in November. – (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)