Bahrain's insurance market posted an annual growth during 2012, the Central Bank of Bahrain (CBB) announced.
Gross premiums/contributions increased by around nine per cent over 2011 to register BD239.05 million in the Bahrain insurance market in 2012.
A significant part of this increase was attributed to a surge in long-term insurance (life and savings products), registering around 14pc increase in gross premiums/contributions to reach BD60.16m in 2012.
This compared with BD52.59m in 2011, representing almost 25pc of the total gross premiums/contributions written in 2012, the CBB said.
Motor insurance represented a significant portion of insurance business written in Bahrain, representing almost 26pc of the total premiums/contributions written in the insurance market in 2012.
This increased from BD55.63m in 2011 to BD61.99m in 2012, showing an increase of around 11pc.
The takaful industry in Bahrain has experienced a remarkable growth in terms of gross contributions by around 22pc to register BD53.67m in 2012, compared with BD43.91m in 2011.
Gross contributions of takaful firms represent around 22pc of the total Bahrain gross premiums/contributions in 2012.
The total assets of insurance and takaful firms (including shareholders and participants funds) in 2012 stood at BD1,612.83m, compared with BD1,463.31m in 2011, showing an increase of almost 10pc.
By end of 2012, Bahrain's domestic insurance market comprised 26 locally incorporated firms and 11 overseas insurance firms (branches of foreign companies) carrying out insurance, reinsurance, takaful, retakaful and captives business in Bahrain.
The locally incorporated firms consisted of 14 conventional insurance firms, seven takaful firms, two reinsurance firms, two retakaful firms and one captive, while overseas insurance firms consist of eight conventional insurance firms and three reinsurance firms.
In addition, there are a substantial number of firms restricted to business outside Bahrain and insurance ancillary services.
"The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry's strong performance not only during 2012 but also during the past five years," said CBB executive director, financial institutions supervision, Abdul Rahman Al Baker.
"Bahrain is fast becoming a hub for major regional and international reinsurance and retakaful firms as evidenced by the increasing number of such firms that are established in the kingdom," said Mr Al Baker.
The Gulf News