Manama: Bahrain-based Saudi National Insurance Company (SNIC) has reported 33 per cent increase in Gross Written Premium (GWP) at BD18.68 million for the year ended December 31, 2015 when compared with BD14.09m for the previous year.
Gross incurred claims increased by 24pc to BD7.77m from BD6.27m and net earned premium grew 51pc to BD4.77m from BD3.16m.
Motor and medical lines of business contributed to the main growth in the net earnings.
Net incurred claims increased by 44pc to BD3.03m from BD2.09m.
Net underwriting result was effected by two elements, Motor Vehicle Accident fund which was introduced with effect from October 2014 as per the issuance of Law (61) on the motor line of business and prudent reserves were placed for the underwriting year 2015.
Net underwriting results increased by 85pc from BD0.30m for 2014 to BD0.86m for 2015.
The increase was mainly due to improvement in the underwriting of primary lines following the strategy placed by the board of directors in 2015.
In 2015, the share of loss in the associate company operating in Saudi Arabia, Wataniya Insurance Company, stood at BD0.35m as against a profit of BD0.28m in 2014.
The investment portfolio in 2015, resulted in a break-even in comparison to a net income of BD0.31m for the same period in 2014.
In turn it reflected a net investment loss of BD0.35m for 2015 when compared with net investment profit of BD0.59m for the same period last year.
The company reported a net loss of BD0.28m for 2015 as against a net profit of BD0.28m in 2014.
Accordingly, the shareholder equity stood at BD14.65m in 2015 as against BD15.07m in 2014.
General manager Khalid Al Shaikh said despite the soft market challenges and low oil prices, the company has shown positive underwriting results.
“The achievement was mainly derived from maintaining unequalled level of servicing along with providing the right solutions to clients and a prudent underwriting strategy.”
The strategy has reflected in helping the company maintain renewal persistency and acquiring new prestigious accounts.