May 5, 2016
The Board of Directors approved the first quarter 2016 financials of the company in its meeting held on Thursday, May 5, 2016.
The Board of Directors informed that the company has achieved significant growth of 54% in profit despite the major challenges faced by the insurance sector due to severe competition among companies and low oil prices. The net profit increased from BD 627,000 in the first quarter of last year to BD 967,000 in the first quarter of this year. The technical profit increased by 138%, from BD 353,000 BD in the first quarter last year to BD 837,000 in the first quarter of this year due to the improvement in net premiums, net commissions and net claims. The investment income decreased by 53%, from BD 591,000 in the first quarter last year to BD 278,000 in the first quarter of this year due to volatile stock market resulting in provisioning for impairment of BD 425,000.
The earning per share was 14 fils compared with 9 fils in the same period of the previous year. The return on equity was 3% compared with 1.9% in the previous year.
Mr. Ebrahim Al Rayes CEO of the company said that the company has achieved significant growth of 20% in Gross premium, from BD 8.9 million in the first quarter of last year to BD 10.6 million in the first quarter of this year. This helped the company to achieve 10% increase in gross earnings from BD 3.46 million to BD 3.79 million. On the other hand the net incurred claims improved by 8%, from BD 2.17 million in the first quarter of last year to BD 2.01 million.
On business development, he said that the company has enabled renewal of motor policies online through company’s website. Purchase of motor polices online for individuals was started last year. He hopes that the company will continue to achieve good results in the coming periods and will retain its leading position in the Bahrain market.