Bahrain National Holding Company (BNH) the parent company
of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl) announces
its financial results for the first quarter period ended 31st March 2023 based on the
adoption of two new accounting standards, IFRS 9 and IFRS 17.
The Group has applied the two new accounting standards (IFRS 17 and IFRS 9),
including any consequential amendments to other standards, effective 1 January 2023.
These standards have brought significant changes to the accounting for insurance and
reinsurance contracts and financial instruments. The Group has therefore restated certain
comparative amounts and presented a statement of financial position as of 1
st January
2022.
The introduction of IFRS 17 as the standard for insurance reporting heralds a shift, not
just in the way we report, but also how the Groups’ stakeholders examine the
fundamentals of our insurance business, and we at BNH, are committed to providing
accurate and transparent reporting of the Group’s performance.
During the first quarter ended 31st March 2023, the Group achieved a net profit
attributable to the shareholders of BD 1.74 million, compared to BD 6.63 million during
the first quarter of the previous year, a decrease of 74%. Earnings per share during the
first quarter is 15 fils compared to 59 fils in the first quarter of the previous year. The total
comprehensive income attributable to the shareholders for the first quarter ended 31st
March 2023 decreased by 73% to BD1.56 million, compared to BD5.70 million during the
previous period of last year.
The decrease in the net profit for the first quarter ended 31st March 2023 in comparison
to similar period of the previous year was primarily due to an extraordinary non-recurring
gain, amounting to BD5.87 million, which was reported in the first quarter of 2022, on the
reclassification of an equity accounted investee, Arabian Shield Co-operative Insurance
Company (ASCIC), based in KSA. The investment in ASCIC has been reclassified as
Available-for-Sale carried at fair value (reclassified to Fair Value through Other
Comprehensive Income on the adoption of IFRS 9), effective 12 January 2022. Excluding
the effect of this reclassification gain, the Group achieved a growth of 131% over the first
quarter of 2022.
The total shareholders’ equity (excluding non-controlling interest) as at the end of first
quarter of 2023 decreased by 4% to BD63.28 million compared to BD65.91 million as at
the end of 2022. The total assets increased by 8% to BD120.23 million compared to
BD111.49 million at the end of previous year.
The Group achieved insurance revenue for the first quarter of BD10.64 million, compared
to BD10.47 million in the first quarter of 2022, an increase of 2%. The insurance service
result for the first quarter increased by 22% to BD1.26 million, compared to BD1.04 million
in the first quarter of 2022. The Group reported investment return of BD920 thousand
during the first quarter, compared to a loss of BD 146 thousand for the first quarter of the
previous year.
Mr. Farooq Almoayyed, Chairman of Bahrain National Holding, commented: “Our
underlying portfolio of businesses continue to demonstrate remarkable strength and
resilience, backed by the performance of our two leading insurance subsidiaries. We are
optimistic and positioned for continued sustainable growth in the future.”
Mr. Raed A. Fakhri, Group Chief Executive Officer of BNH, commented: “We are
pleased with the performance of our portfolio, led by the performance of Bahrain National
Insurance (bni), Bahrain National Life Assurance (bnl) and our investment portfolio. The
insurance subsidiaries’ transition to the IFRS 17 accounting standard will enhance the
comparability and transparency of our financial reporting, and we believe it will bring even
more clarity and confidence to our investors and stakeholders about our business health
and future growth potential. We look forward to continuing our positive trajectory to the
benefit of all stakeholders.”
