Bahrain National Holding reports net profit of BD2.021m for 2008

Insurance Underwriting performed extremely well for the year with profit up 56.3% to BD3.135m compared to BD2.006m for 2007. Motor Underwriting profit increased by 13%, General Business increased by 257% and Medical and Life increased by 68%.

However, the substantial drop in world financial markets caused investment income to decline to BD0.433m in comparison to BD3.103m for 2007. The Group has decided to make prudent provisions for impairment in the value of securities which has contributed to the lower result for 2008. We hope that this will prove to be a one off charge and that world markets will improve over the next 6 to 12 months.

The Board of Directors approved a recommendation to the Company's Annual Ordinary General Meeting to distribute 15% cash dividends to shareholders from the company's paid-up capital to shareholders at 15 fils per share for 2008, subject to the approval of the relevant regulator.

The Board would like to thank our shareholders, customers and all employees of BNH whose efforts during the year helped achieve this positive result in difficult circumstances.

"To operate a business in such difficult market conditions is certainly a challenge; but due to our prudent and selective underwriting and direct investment strategies, such hardships were partially mitigated. Our associate companies - National Finance House and Arabian Shield - achieved higher profits for the year 2008 exceeding all expectation set at their inauguration. Therefore, we will continue to selectively seek market opportunities and bring them to fruition,"

commented Mahmood Al Soufi, Chief Executive of BNH.