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SNIC Insurance Posts Improved Financial Results and Enhanced Operational Performance

SNIC Insurance (SNIC), a leading Bahrain-domiciled insurance company, announced today an improved financial and operational performance for the first six months of 2019 compared with the corresponding period in 2018.

The underwriting result for the first half of 2019 increased by 39.1% to BD 0.43 million from BD 0.31 million, due to the corrective measures introduced by the Company over the past 18 months. This is reflected in net incurred claims reducing by 22.4% to BD 1.53 million from BD 1.98 million a year earlier. The Company’s conservative underwriting approach and strong risk management resulted in gross written premiums decreasing by 7.3% to BD 5.31 million (HY 2018: BD 5.73 million); and net earned premium dropping by 9.4% to BD 2.65 million (HY 2018: BD 2.92 million). Investment income and other income rose by 3.2% to BD 0.60 million (HY 2018: BD 0.58 million), benefiting from favorable global market conditions across most asset classes.

Net profit for the first half of 2019 grew by 3.4% to BD 0.37 million from BD 0.36 million, as a result of the improved technical result and increase in investment income. General and administrative expenses rose by 23.9% to BD 0.66 million (HY 2018: 0.53 million), which is attributable to the major revamp of the Company’s core insurance system, and continued investment in human resource development. 

SNIC continued to maintain a strong balance sheet during the period. As at 30th June 2019, total assets had increased to BD 30.02 million from BD 28.84 million at the end of 2018; while total shareholders’ equity grew to BD 17.24 million from BD 16.87 million.

Commenting on these results, SNIC General Manager, Mr. Khalid Al-Shaikh, said: “We are pleased with the Company’s financial performance, especially the technical result and net profit, which exceeded our expectations whereby the first six months of 2019 proved to be a very busy and productive period for the Company. “A key development entailed replacing the core insurance application with Tata Consultancy Services (TCS) Version 11 to assist in improving operational efficiencies; as well as supporting the development of new ‘InsurTech’ digital solutions for retail and corporate clients, which are scheduled for implementation by Q4 2019. 

“In addition, SNIC signed exclusive motor insurance agreements with Euro Motors and First Motors; and launched three new innovative medical insurance solutions in anticipation of Bahrain’s compulsory health insurance scheme, which is expected to be implemented fully during 2020.

“We also continued to enhance customer service through the introduction of a new call management system; an advanced mobile app for pre-booking appointments at branch offices; and a convenient WhatsApp-based motor claim process from registering to approval of a claim, giving our clients value and convenience from the comfort of their home and offices.

“Looking ahead, based on our significant achievements to date, we are optimistic about achieving improved top- and bottom-line growth by the year-end; and further strengthening the Company’s competitive edge,” concluded Mr. Al-Shaikh.
 

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