Bahrain National Holding Company (BNH) announced a group net profit of BD900,000 ($ 2.4 million) for the first half compared with BD1.66m for the same period in 2011.

The group posted a net profit of BD82,000 for the second quarter, compared with BD600,000 in the same period last year.

It has issued revised financial results following a directive from the Central Bank of Bahrain.

BNH is the parent company of Bahrain National Insurance (bni) and Bahrain National Life Assurance (bnl).

Gross premiums for the second quarter increased by 0.3 per cent compared with the same period last year.

Gross premiums grew 6.47pc in the first half.

Net earned premiums increased by 6.7pc for the second quarter and 7.65pc for the first half.

Net claims increased by 32.4pc for the second quarter and by 27.88pc for the first half. This has resulted in an underwriting loss of BD15,000 for the second quarter as compared with the profit of BD427,000 made last year.

The underwriting profit for the first half showed a profit of BD330,000 as against the BD1.66m made last year.

Investment income for second quarter was lower by BD107,000 compared with the same period last year due to an impairment of BD62,000 in the second quarter.

Investment income for the first half decreased by 13.5pc. This was due to an impairment of BD100,000 on certain investments in June.

The group's net profit for the second quarter was lower by 86.4pc in comparison with the corresponding period last year.

The group attributed the fall to increase in claims and lower investment income, while the figures for the first half were lower by 45.8pc as compared to 2011.

Total assets as on June 30 increased by 3.3pc compared to the year-end.

BNH's subsidiary bni reported net profit of BD1.1m for the first half.

Gross premiums increased by 2.3pc and net earned premiums grew by 4.3pc compared with the corresponding period last year.

Underwriting profit was lower by 45.2pc.

Claims increased by 30.2pc on the back of higher spare parts and labour costs. Investment income was lower by 28.2pc due to lower profits booked on sale and impairment.

The subsidiary's profit for the period was lower by 37.4pc compared with June 2011, mainly on account of claims and impairment of investments.

Total assets increased by 4.8pc.

Another subsidiary bnl reported a net profit of BD40,000 in the first half.

Gross premiums increased by 24.7pc and net earned premiums grew by 17.5pc compared to June 2011.

Underwriting profit was lower as claims increased by 23.5pc compared with last year. Investment income was higher by 46.9pc.

Profit for the period was lower by 57.3pc.