Bahrain National Holding Company Bsc · BAHRAIN:BNH
Bahrain National Holding Company Bsc — Bahrain National Holding Company — Presentation (2006)
19 slides from Bahrain National Holding Company Bsc's investor presentation, Dec 2, 2006
Slide 1: Presentation on Planning for Retirement
3 img? BNL AY Slat Libel Gaal Presentation on Planning for Retirement
Slide 2: Bahrain National Life
PLANNING FOR RETIREMENT Bahrain National Life BNL is the only locally established life assurance company. 100% owned subsidiary of Bahrain National Holdings with authorized capital of BD6m and BD1.5m paid up Over 10 years’ experience in life assurance. Offers range of products for individual
Slide 3: Bahrain National Life
PLANNING FOR RETIREMENT Bahrain National Life BNH has an established investment department with qualified professionals. Consistent record over several years of increasing investment income under varying market conditions. Excellent infrastructure provides access to bonds, shares, funds and ot
Slide 4: Global Trends
PLANNING FOR RETIREMENT Global Trends Improved medical care and lifestyle have increased life expectancy over last 50 years Higher quality of life in retirement Falling birth rates mean less contributions to government schemes Governments concerned about fiscal deficit Lower investment ret
Slide 5: Global Trends
PLANNING FOR RETIREMENT Global Trends Previously governments responsible for pensions Trend has changed in last 10-15 years. Government scheme is now a foundation Private pensions becoming more important Retirement planning essential for everyone
Slide 6: Agewise Population Profile
PLANNING FOR RETIREMENT AGEWISE POPULATION PROFILE (% of population in each age band to total - nationals only) 100% 80% 60% 40% 20% 0% Bahrain Oman Saudi Arabia UK Iran Singapore Kuwait Qatar UAE Thailand Japan World Age 0-14 yrs (% to total) Age 15-64 (% to total) Age over 65 (% to total)
Slide 7: Pensions Structure
PLANNING FOR RETIREMENT Pensions Structure TIER 1 TIER 2 TIER 3 Lump Sum Pension Indemnity
Slide 8: Pension structure in Bahrain
PLANNING FOR RETIREMENT Pension structure in Bahrain Employed Bahrainis are entitled to pensions for life (through GOSI) Expatriates are entitled to indemnity lump sum Unfulfilled need for a lump sum for Bahrainis in addition to GOSI Expatriates can save surplus income Self Employed in Bah
Slide 9: GOSI Benefits
PLANNING FOR RETIREMENT GOSI Benefits Started in 1976 Qualifying period – 15 years for Ladies, 20 years for men 2% of salary for every year Pension age 55 for Ladies and 60 for men. Reduced on early retirement Usually around 40% of salary as pension
Slide 10: The BNL Staff Retirement Plan
THE BNL STAFF RETIREMENT PLAN WHAT IS THE PLAN? A plan with contributions from employer and employees Administered by the employer with contributions direct from employees salary Joint contributions in percentages agreed Operated according to rules agreed with the employer Investments mana
Slide 11: BNL Staff Retirement Plan Features
BNL STAFF RETIREMENT PLAN PLAN FEATURES Potential for extra return in the form of annual bonuses. Minimum life insurance included. Additional life/disability cover can be added on. Flexible - can accommodate changes in salaries and contributions BNL provides support for presentation to emplo
Slide 12: Benefits for the Employer
THE BNL STAFF RETIREMENT PLAN A win-win situation BENEFITS FOR THE EMPLOYER Effective partnership between Employer, Employee and GOSI Human resources tool for recruiting and retaining quality Bahrainis Avoids cost of training new employees Removes administration cost Possible integration w
Slide 13: Benefits for Employees
BNL STAFF RETIREMENT PLAN a win-win situation BENEFITS FOR EMPLOYEES Cash lump sum on retirement, no need to commute pensions Cash sum on leaving service subject to minimum service conditions. No personal administration Benefit of employers contributions Principal return guarantees Benef
Slide 14: BNL Staff Retirement Plan Illustration
BNL STAFF RETIREMENT PLAN ILLUSTRATION 100 80 Amounts BD Thousa nds 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 <------ YEAR-------> Employer/ Staff contribution Total contribution Minimum guaranteed value Value with annual bonus of 2.50% Annual contri
Slide 15: Examples of Returns
BNL RETIREMENT PLANNING Examples of Returns A small saving of BD 50/- per month will become BD8,654/- in 10 years at 7% annual return ! In 20 years, accumulation would be BD26,046/- !! If the annual return is 10%, the accumulation in 20 years would be a staggering BD 61,000/- !!! In 30 yea
Slide 16: Little Drops Make Mighty Splashes
BNL RETIREMENT PLANNING LITTLE DROPS MAKE MIGHTY SPLASHES 120 100 80 Amount BD Thousands 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 <------------ YEAR---------------> Amount saved Value of saving @ 7% p.a. Value of saving @ 10% p.a. Savings of BD 50/-
Slide 17: The Cost of Delay
BNL RETIREMENT PLANNING The Cost of Delay 120 100 80 Amount BD Thousands 60 40 20 0 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 <------------ YEAR---------------> Value of saving without delay (10% p.a.) Value of saving with 10-year delay (10% p.a.) Savings of B
Slide 18: What It Is and Isn't
THE BNL STAFF RETIREMENT PLAN WHAT IT IS AND ISN’T THE BNL STAFF RETIREMENT PLAN IS: – A SUPPLEMENT TO GOSI PENSIONS – A VITAL COMPONENT OF HUMAN RESOURCES STRATEGY. – A TOOL FOR LONG-TERM WEALTH CREATION THE BNL STAFF RETIREMENT PLAN IS NOT: – A LOAN SCHEME FOR STAFF – A SUBSTITUTE FOR GOSI PEN
Slide 19: A Partnership for Life
~ ~ aa ee BNL &Z cone iia Cal Bahrain National Life a partnership for life
Bahrain National Holding Company — Presentation (2006) on 6ix