In the Name of Allah, the Most Gracious, the Most Merciful

During the fiscal year 2023, the insurance industry faced significant challenges amidst global economic headwinds. Geopolitical uncertainties, trade tensions, volatile commodity prices, and liquidity concerns created a demanding environment. Additionally, the Russia-Ukraine conflict and high-interest rates notably impacted global and domestic growth.

Your Company had two major achievements during the year 2023. The first was voluntarily implementing the new Takaful accounting standard FAS 43, 42 & 30 issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The standard was effective only from 1 January 2025, with early adoption permitted.

The management, with the support of the board, agreed to early adopt the standards for transition to the new standard and Risk-Based Capital regimes. This placed your Company in line with conventional insurance companies, which implemented the IFRS 17 accounting standard equivalent to FAS 43 standard effective 1 January 2023, making your Company the first takaful company to implement the new accounting standard in the region.

Secondly, your Company made significant progress in its commitment to consistently delivering high-quality customer service by successfully implementing new core technology systems in 2023. This strategic advancement has enabled us to enhance customer experience further and streamline our operations. In addition, we have embraced digitalization and artificial intelligence to enhance our claims processes, resulting in improved efficiency and an upgraded experience for our valued customers and intermediaries. These efforts reflect our dedication to leveraging cutting-edge technology to meet the evolving needs of our stakeholders and reinforce our position as a customer-centric organization.

We are an Equal Opportunity Employer, and I am happy to share that this year, The Company achieved the award of the best work environment for 2023 from “The Great Place to Work®” Middle East Trust Index TM. We have taken significant strides in our Diversity and Inclusion journey. Our gender diversity ratio has improved to 71:29. Moreover, our women empowerment program, aimed at providing equal opportunities for women in positions traditionally dominated by men, has garnered positive feedback. Takaful has successfully appointed three female chief executives to lead insurance business lines. Additionally, we have formalized an Environmental, Social, and Governance (ESG) Framework as part of our ongoing commitment to embracing sustainability across various aspects of our business. Moving forward, we plan to build upon these accomplishments in the years to come.

Following the full removal of all restrictions previously imposed due to the pandemic, FY23 witnessed increases in claims ratios, especially in the medical business, which affected the underwriting profits across most of the lines of business. However, the investment results were remarkable, resulting in an overall profit of BD 1.513m for 2023 compared to BD 1.253m for the previous year.

 

Our strategy has been that of offering convenience to customers. To render this strategy in action, we developed an array of products relevant to customers’ needs to provide a delightful onboarding experience and to deliver superior service to customers. Takaful introduced new products under its FGA and Medical segments, which was a step towards its strategy to develop and provide customized products to its esteemed customers.

Our strength is growing and managing a high-quality, multi-distribution channel, together with our expertise in providing innovative solutions to our customers’ protection needs and delivering service excellence.

In 2023, Takaful International maintained an AM Best credit rating of A- Excellent. This indicates the Company’s sound position, strength, and quality of services it offers to its customers and the trust of its various stakeholders.

These initiatives have played a pivotal role in empowering your Company to maximize opportunities and uphold its esteemed leadership position in Bahrain’s Takaful industry. We sincerely thank all our stakeholders for their unwavering support, which has been instrumental in establishing us as their preferred insurance provider.

Takaful has endeavored to maintain the expectations of its shareholders, policyholders, and other stakeholders. Nurturing long-term relationships and providing the best services have always been Takaful’s highest priority. From its very inception, Takaful has remained steadfast in fostering a culture rooted in integrity and transparency. Our unwavering commitment has been to conduct all business activities in alignment with the founding principles that define us: fairness, kindness, efficiency, and effectiveness. Guided by the principles of Islamic Insurance, cooperative sharing, and caring, we have strived to uphold these values in every aspect of our operations.

We are optimistic about the year 2024 and anticipate positive growth in our business. Our main focus will continue to be delivering exceptional quality services to our valued customers. Additionally, we will prioritize prudent management of claims and expenses, which will contribute to improved results for the company. By concentrating on these key areas, we are confident in our ability to sustain growth, enhance performance, and achieve our goals in the coming year.

We are a strong institution focused on building profitable growth. By being disciplined and taking appropriate actions, we are optimistic about the future. We have a clear purpose and a strategic plan with a long-term view. Our commitment is to create value for our stakeholders, including customers, shareholders, distributors, and employees. We strive to deliver measurable results and a positive experience for everyone involved. Our Board of Directors believes in upholding the highest standards of governance and accountability. The board has taken cognizance of various regulatory changes in the overall governance framework and remains committed to imbibing the spirit of the law and regulations.

I would like to take this opportunity to thank them for their support and guidance. I would also like to express my appreciation to the employees of Takaful International for their dedicated efforts towards achieving the company’s goals. I would also like to thank our valued clients, reinsurance companies, Sharia’a board members, intermediaries, and all our business partners for their support, which has contributed to the company’s growth.

Congratulations to the team on achieving a year of strong financial performance and continuing to execute its strategy to capture long-term growth opportunities in the insurance market.

With these goals in mind, we look forward to another successful year of growth and prosperity alongside our partners. Together, we will seize opportunities and achieve remarkable milestones.

Thank you,