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SNIC Insurance Reports 14% Growth in Gross Written Premiums

MANAMA - 30 August 2022 - SNIC Insurance (SNIC), a leading Bahrain-based insurer rated B+ by AM Best, announced its half-year financial results today. The company posted growth in gross written premiums which was generated from all lines of business with an increase of 14.4% in the first six-month period ending 30 June 2022 to BD 8.33 million, compared to BD 7.28 million for the same period last year, reflecting a generally positive period for the insurance sector regionally. Net earned premiums also saw strong growth, an increase of 19.1% to BD 3.88 million compared to BD 3.26 million for the first six months of 2021.

SNIC’s balance sheet remains strong with total assets on 30 June 2022 totalling BD 37.01 million, an increase of 12.1%. With management expediting several developments to accelerate SNIC’s digital transformation in response to customers new trends post COVID pandemic, general and administrative expenses rose to BD 1.27 million, compared to BD 0.97 million for the same period last year. Net incurred claims climbed by 34.6% to BD 2.52 million for the first six months of 2022 compared to BD 1.87 million for the same period in 2021 as COVID restrictions were removed and traffic returned to pre-pandemic levels.

Investment results were impacted by substantial market uncertainty and volatility. To control creeping inflation, central banks globally hiked interest rates which caused the stock markets to decline significantly. Accordingly, SNIC investment portfolio saw net losses of BD 1.47 million compared to a net income of BD 0.51 million in the same period last year. In addition, SNIC’s investment income was impacted by losses incurred at its Saudi Arabian associate, Wataniya Insurance Company, with SNIC’s share of that loss BD 1.07 million compared to a loss of BD 0.76 million in the first six months of 2021. As a result, the net investment losses stood at BD 2.33 million for the first six months of 2022, compared to BD 0.25 million in 2021.

Net losses for the first six months of 2022 were BD 2.63 million, compared to a net loss of BD 0.29 million for the corresponding period in 2021. Reflecting the interim results, total shareholder equity dropped by 15.8% to BD 15.85 million compared to BD 18.82 million in 2021.

SNIC’s General Manager, Mr. Khalid Al-Shaikh, said: “During the first half of the year, we continued to enhance our customers’ digital experience, developing a state-of-the-art mobile application that can be used by both retail and corporate clients. Our clients now benefit from a single app to complete their insurance transactions from anywhere at any time with a touch of a button”.

Mr. Al-Shaikh concluded: “The insurance industry is an important forward indicator of the global economy. Thanks to the Kingdom’s leadership, the insurance companies in the Kingdom of Bahrain are well-placed to seize the many significant opportunities we see in the market. Looking ahead, the stock markets remain volatile and uncertain however, we are confident that our underlying performance is strong, and we look forward to improving technical and financial results by year end”. 

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