Bahrain Insurance Report Q1 2010

Bahrain Insurance Report Q1 2010 Review

This report differs from its predecessors in several respects. In our analysis of the regions’ competitive conditions, we provide a much more comprehensive ranking of insurance companies in the major segments from the point of view of the organisation that is providing the data (almost always the national insurance regulator or the national insurance trade association). For instance, Bahrain’s non-life insurance sector continues to be dominated by two large companies, Bahrain Kuwait Insurance and Bahrain National Insurance, which together account for about one-third of gross written premiums in that sector. Other large players in the sector include Takaful International, Al Ahlia Insurance, Gulf Union Insurance & Reinsurance, AXA Insurance (Gulf) and ACE American Insurance. In addition, 15 other, smaller companies participate in the non-life market. By contrast, the life sector is dominated by Life Insurance Corporation (International) and Zurich International, which together account for approximately two-thirds of gross written premiums. Eight other players share the remaining third of the market share for the life sector.

In this report we also provide a breakdown of the insurance sector by line - from the point of view of the regulator or trade association. In Bahrain in 2008, for instance, comprehensive motor insurance (presumably compulsory motor third party liability, CMTPL) was the largest line in the non-life segment, accounting for a little under half of gross written premiums. Other major lines included fire, property and liability; medical; and engineering cover.

At the time of writing, in January 2010, we have been able to ensure that the report includes actual data for 2008. We have generally been able to use data that has been published over the course of 2009 to adjust our forecasts for the year as a whole. We have also extended the forecasts out to 2014. BMI expects total premiums in 2009 of BHD176mn. This includes non-life premiums of BHD109mn and life premiums of BHD67mn. In 2014, the corresponding figures are forecast to be BHD376nm, BHD210mn and BHD166mn respectively. In terms of the key drivers that underpin our forecasts, we forecast non-life penetration to rise from 2.06% in 2009 to 2.50% in 2014, and for life density to rise from US7 to US8 per capita. BMI’s insurance industry Business Environment Rating for Bahrain is 55.9.