Net profit for the three months ended September declined by 81.1pc to BD200,000 from BD1.07m for the same period of 2016 due to high claims and additional incurred but not reported provision in motor.
Net profit attributable to shareholders of the parent for the nine-month period was BD2.98m, lower by 4.1pc when compared with BD3.10m achieved in the same period last year.
Net profit attributable to shareholders of the parent for the third quarter was BD150,000 compared with BD1.03m achieved in third quarter of 2016.
The decrease in profits is mainly due to lower underwriting results.
The group registered an increase of 8.3pc in gross premiums for the nine-month period at BD23.64m when compared with BD21.83m earlier, whereas gross premiums for the three months showed an increase of 20.9pc from BD6.85m earlier to BD8.28m now.
Net earned premium was BD12.27m for the nine-month period in comparison to BD11.53m for the same period in 2016, an increase of 6.4pc.
Underwriting profits were BD870,000 compared with BD1.39m earlier, whereas for the third quarter the company reported a loss of BD41,000 as against underwriting profit of BD479,000 earlier.
Although premiums continued to grow, underwriting profits were affected by higher claims, increase in claims reserves and lower net commission income.
Total investment income for the nine-month period was BD3.57m as against BD3.05m earlier, whereas total investment income for the third quarter was BD720,000 as against BD1.01m for the same period of 2016.
“The results demonstrate resilience in the face of a difficult year for the insurance market in Bahrain, characterised by pressure on premiums and increasing claims,” said BNH chairman Farouk Almoayyed.
“Our steady performance in investments and strong liquidity in addition to good results of our associated companies’ performance are major positives.”
Group chief executive Sameer Al Wazzan said the third quarter was challenging mainly due to high claims in motor and general accidents which affected the technical profitability.
“We are proud that bnl managed to turn around from a technical loss to profitability.
“We continue to take operational measures to maintain gains while improving profitability by raising employee productivity and skills. We are also in the process of investing in IT to enhance services and the ability to offer innovative products,” he added.