BH Assurance Reports Net Profit of 3,037 MTND in First Half of 2024
BH Assurance has reported a net profit of 3,037 MTND for the first half of 2024, compared to 5,029 MTND for the same period in 2023. The main reason for this decline is the Non-Life branch, which posted a technical loss of -4,929 MTND, compared to -2,496 MTND last year.
Despite this, the company's turnover remains strong, with premiums written totaling 60,058 MTND. On the claims side, the net amount paid out increased by only 3.3% year-on-year, reaching 33,634 MTND. However, there was a significant variation in provisions for claims, with a net decrease of -5,950 MTND compared to -1,640 MTND for the same period last year.
This increase in indemnities is mainly due to two major fire-related claims, which were heavily reinsured, representing a total cost of 19,600 MTND. The direct impact on the result was 1,000 MTND. Technically, only the Engineering branch was profitable, with a gain of 0,096 MTND.
For the Life branch, the net result was established at 5,825 MTND (6,830 MTND for the first half of 2023). The turnover was 43,268 MTND, representing a strong performance. The distribution of premiums written shows that 51.0% came from the death segment (22,074 MTND), while capitalization products contributed 48.9% to the turnover (21,184 MTND). The claims frequency was high during the first half of the year, with net amounts paid out of 11,080 MTND, compared to 6,236 MTND for the same period in 2023.
The company is capable of limiting its losses during the second half of the year if the Non-Life claims frequency remains normal. However, it will need to take into account the ongoing tax risk, as the insurer is undergoing an in-depth tax audit covering the 2019-2022 fiscal years. These figures should not have an impact on the stock price, given that the stock is thinly traded and its capital is largely held by institutional investors with a long-term horizon.
