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Bahrain insurance sector grows 5.4 per cent in 2005

MANAMA - The Bahraini insurance sector posted an increase of 5.4 per cent in 2005 continuing with the growth trend it has witnessed in past years, according to figures released by Bahrain Monetary Agency (BMA) on Wednesday.

Gross premiums generated in the domestic market for 2005 amounted to 94.9 million Bahraini dinars (251 million US dollars), compared with 90.1 billion dinars the year before.

Gross claims surged by 26.8 per cent to 47.5 million dinars in 2005, from 37.5 million the previous year, partly due to new reporting requirements set up by the BMA last year.

The domestic market comprised 19 insurance companies carrying out direct insurance business in Bahrain in 2005. The companies included 11 locally incorporated firms and eight branches of foreign firms.

The climate for insurance services continues to improve in Bahrain and the region, said BMA Executive Director Abdul Rahman Al Baker.

Robust economic growth, renewed government investment in large infrastructure projects and strong private sector investment in real estate and other economic sectors are contributing to the expansion of the insurance sector.

He added that increasing public awareness and acceptance of the need for insurance was also a contributing factor in the growing demand for insurance products in both the conventional and Islamic sectors.

The growth was also reflected in a healthy increase in employment in the insurance sector.

Bahrain’s locally-incorporated insurance firms posted strong gains during 2005, increasing their market share to nearly 74.8 per cent,70.8 per cent the previous year.