Bahrain: Gulf Union announces net profit of $4.64mln
The business made BD1,752,435 in net profit, which was 5.36 per cent more than the BD1,663,364 profit from the prior year. This expansion demonstrates the company's steadfast dedication to growing in all business domains and improving financial performance, as measured by profitability and shareholder equity.
Revenues from insurance services increased 8.87pc in 2024 to BD8,820,765 from BD8,101,938 in 2023. This rise is a result of an increase in the company's business volume and a rise in the demand for its insurance services.
Meanwhile, net results from insurance activities decreased by 10.88pc to BD1,063,411 in 2024 from BD1,193,236 in 2023. This decline is attributed to an increase in the number of claims during last year's rainy season and rising insurance operation costs.
Additionally, net investment income increased by 26.40pc from 2023 to 2024, from BD406,239 to BD513,488. Strong investment performance and higher investment returns are reflected in this growth.
To strengthen our financial position and fuel future expansion, the firm issued 2,000,000 non-cumulative convertible preference shares with a nominal value of BD1 per share to current shareholders on May 7, 2024.
The company successfully secured subscriptions totalling BD1,920,000 from existing shareholders and private placements, which amounted to BD1,020,000 and BD900,000, respectively, in December 2024 and January 2025.
The chairman, Abdulaziz Al Turki, conveyed his satisfaction with the positive financial results attained in 2024, despite the challenges in competitive insurance market.
He also highlighted that the company's significant growth and effective risk management strategies have strengthened its position within Bahrain's insurance sector.
Mr Al Turki emphasised that the company is determined to continue growing through its ample internal resources, with plans to expand its business operations and increase its presence in Bahrain within the framework of sound technical competition principles.
The chief executive Waleed Mahmood attributed this success to the unwavering efforts of the board's leadership, the dedication of employees to enhancing service quality and product offerings, and the loyalty of customers.
He expressed his heartfelt appreciation to all esteemed shareholders, accredited investors, loyal customers, brokers, the Central Bank of Bahrain and reinsurers for their continued support.
Mr Mahmood assured stakeholders that the company's future is promising, brimming with significant opportunities for ongoing growth and success in the insurance sector. With an emphasis on innovation and customer-focused services, he is confident that Gulf Union Insurance and Reinsurance Company will not only continue to thrive but also adapt to market changes and capitalise on new opportunities, securing long-term prosperity for all stakeholders.
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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