International and local competition as well as claims in vehicle and medical insurance has led to an increase in gross premiums for Bahrain National Holding (BNH) Company.

"We are very satisfied with the overall performance, given challenging conditions in the insurance markets," said BNH chief executive Mahmood Al Soufi.

"Gross premiums increased significantly compared to 2011 and investment performance was steady.

"Considering the high claims in motor and medical insurance and fierce competition from local and international companies, the company's overall performance was good."

The insurance and risk solutions management company announced its mid-year financial results yesterday.

BNH's gross premiums increased by 6.5 per cent while net earned premiums grew 7.7pc compared to last year.

The underwriting profit was lowered by 63pc, mainly on account of claims which increased by 27.9pc.

Investment income declined by 13.5pc which the company said was due to an impairment on an investment made last year worth BD100,000 ($ 266,951).

The group reported a net profit of BD900,000 which was 45.9pc lower than last year.

Total assets increased by 3.3pc.

The group's subsidiary Bahrain National Insurance (bni) reported a net profit of BD1.1 million.

Gross premiums increased by 2.3pc while net earned premiums grew 4.3pc compared to last year.

The underwriting profit declined by 45.2pc.

Higher spare parts and labour costs led to a 30.2pc increase in claims. Investment income fell by 28.2pc due to lower profits booked on sale, the company said.

The subsidiary's profit declined by 37.4pc which the company stated was on account of claims and impairment of investments.

Total assets increased by 4.8pc.

Bahrain National Life Assurance (bnl), one of BNH's subsidiaries, registered a net profit of BD40,000 which was 57.3pc lower than the previous year.

Gross premiums increased by 24.7pc while net earned premiums grew by 17.5pc compared to last year.

The underwriting profit remained low as claims increased by 23.5pc.

Investment income rose 46.9pc compared to last year.