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SNIC INSURANCE NET PROFIT GROWS TO BD 1.46 MILLION IN 2020

SNIC Insurance (SNIC) announced today its financial results for the year ended 31 December 2020. The Company posted an improved financial performance despite the impact of the COVID-19 pandemic.

Net profit for the year increased by 2% to BD 1.46 million from BD 1.43 million in 2019, inclusive of a one-off gain of BD 0.38 million from the sale of SNIC’s share in Saudi Re (a Saudi joint stock reinsurance company registered under the Central Bank of Saudi Arabia).

The underwriting result improved by 37% to BD 1.31 million from BD 0.96 million in 2019, resulting from net earned premiums increasing by 6.7% to BD 5.79 million from BD 5.42 million a year earlier. The loss ratio improved to 54% compared with 58% in 2019, with net incurred claims reducing by 1% to BD 3.13 million from 3.16 million in 2019. General and administrative expenses reduced by 2% to BD 1.90 million in 2020, which is attributable to the fiscal relief package provided by the Government of the Kingdom of Bahrain. 

SNIC continued to maintain a strong financial position. As at 31 December 2020, total assets stood at BD 31.53 million, down by 0.5% from BD 31.68 million at the end of 2019; while total shareholders’ equity had grown by 7% to BD 19.70 million from BD 18.38 million at the end of the previous year.

Commenting on these results, SNIC General Manager, Mr. Khalid Al-Shaikh, said: “The swift corrective measures that we implemented early in the year, helped in mitigating any serious impact by the coronavirus on our financial results, which exceeded our expectations. Key highlights include a substantial improvement in the underwriting result, which was reflected positively in the improved loss ratio.”

To combat the potential impact of the COVID-19 pandemic, SNIC devised and implemented a three-phase plan to ensure an appropriate balance between remote and onsite working, in line with prevailing precautionary measures introduced by the Government. The Company also adopted regulatory protocols to protect the health and safety of staff and customers at the head office and branches, and reinforced these with an ongoing awareness campaigns.

To support clients and the community through containing the impact of the coronavirus crisis, the Company introduced several innovative initiatives. These were made possible by the upgraded core insurance system with Tata Consultancy Services providing the flexibility for developing COVID-19 relief products. In addition, corporate clients’ needs were addressed by the secure digital services of the new SNIC Employee Benefits Platform; while retail customers were able to take advantage of the convenience and security of the Company’s various online channels.

“Looking ahead, we are optimistic about the prospects for SNIC in 2021. Based on our successful performance this year, and given the Government’s concerted vaccine rollout programme, we look forward to a gradual return to normality,” Mr. Al-Shaikh noted.

“As a precautionary measure, we have put in place prudent contingency plans to ensure business continuity in the face of any future unexpected shocks. We remain committed to continuing our support for the wise Government of Bahrain in combating COVID-19; and to ensuring the health, safety and prosperity of our employees and customers, and the wider Bahrain community,” he concluded.

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