The Board of Directors of Takaful International Company B.S.C. (Trading Code: TAKAFUL) approved the financial results for the year ended 31st December 2024.
Financial Result for the three months ended 31st December 2024
The net profit attributable to the shareholders for the three months ended 31st December 2024 was BD 429K compared to BD 264K for the same period in the previous year, an increase of 62%, and a corresponding earnings per share of 5.05 Fils compared with 3.11 Fils for the same period in the previous year. Total comprehensive income for the three months ended 31st December 2024 declined to BD 201K compared to BD 548K for the same period in the previous year, a decrease of 63%.
The Company reported a total net profit of BD 487K for the fourth quarter 2024 compared to BD 363K for the same period in the previous year with an increase of 34%, which is mainly attributed to higher performance of the Shareholders’ fund which reported a profit of BD 429K compared to BD 264K for the same period in the previous year, with an increase of 62%. The increase is ascribed to the improved income generated from the investment portfolio during the quarter. The participants’ Takaful funds achieved a surplus of BD 58K in the fourth quarter 2024 compared to a surplus of BD 99K for the same period in the previous year, a decrease of 41%. This decline is due to the increase in the claims reserve during the period compared to the corresponding period of the previous year.
Recognized takaful contributions were BD 6.774m in the fourth quarter 2024 compared to BD 6.159m for the same period in the previous year, an increase of 10%. The recognized takaful cost decreased by 21.6% to BD 5.088m in the fourth quarter 2024 as compared to BD 6.489m for the same period in the previous year.
Financial Results for the year-end 31st December 2024
As for the results of the full year ended 31st December 2024, the net profit attributable to the shareholders was BD1.334m compared to BD 937K last year, an increase of 42%, and corresponding earnings per share at 15.7 Fils compared with 11.03 Fils for the same period in the previous year. Total comprehensive income for the year ended 31st December 2024 increased to BD 1.231m compared to BD 969K last year, an increase of 27%.
Net profit for the year ended 31st December 2024 was BD 1.65m compared to BD 1.513m for the same period in the previous year, with an increase of 9%, which is mainly attributed to the improved performance of the shareholders’ fund which achieved a profit of BD 1.334m compared to BD 937K for the same period in the previous year with an increase of 42%. The increase is mainly attributed to the improved income generated from the investment portfolio. The participants’ takaful funds achieved a surplus of BD 315K compared to a surplus of BD 575K for the same period in the previous year, a decrease of 45%. This decline is due to the increase in the claims reserve for the year compared to the previous year. The increase is attributed to the heavy rain claims in April 2024 as well as the inflation in medical claims, which the Company has taken corrective underwriting measures to address.
The Company registered recognized takaful contributions of BD 25.981m for the year ended 31st December 2024 compared to BD 24.363m last year, with an increase of 7%. Recognized takaful cost increased by 10% to BD 22.624m for the year ended 31st December 2024 as compared to BD 20.551m last year.
The Company’s total equity attributable to the shareholders grew by 5% to BD 12.68m as of 31st December 2024 compared to BD 12.086m as of 31st December 2023.
Total assets of the Company increased by 5% to BD 43.833m as of 31st December 2024 compared to BD 41.589m as of 31st December 2023.
Statement of the Chairman of the Board of Directors
Mr. Ebrahim Al-Rayes, Chairman of the Board, stated that the company’s financial results for the year 2024 came in line with the financial projections approved by the Board. He highlighted that the company achieved significant growth in income from its investment operations, which saw a notable improvement in the performance of shareholders’ funds. The adoption of the new investment strategies has resulted in positive outcomes for the performance of the shareholder fund. This shift has led to improvements in both listed financial stocks and Islamic Sukuk portfolios, achieving full benefit from cash management.
In parallel with the financial achievements, an ESG committee was successfully established last year, marking a significant step in our commitment to sustainability and responsible governance. This year, we are proud to announce that our very first comprehensive ESG report will be published for the year 2024, which will highlight the progress and outcomes of the company’s sustainability efforts. Over the past year, Takaful International has been working tirelessly to implement and advance various environmental, social, and governance initiatives, with a clear focus on creating a lasting positive impact alongside our financial growth.
The Chairman of the Board of Directors indicated that the Board decided to submit a recommendation to the General Assembly to distribute cash dividends at the rate of 12.5% of the paid-up capital, which is equivalent to 12.5 Fils per share, totaling BD 1,062,500, subject to the approval of the Central Bank of Bahrain and the shareholders in the upcoming annual general meeting.
Statement of Chief Executive Officer
Mr. Essam Mohammed Al Ansari, CEO, shared his insights on the company’s financial performance, noting that the results demonstrate the company’s resilience and ability to maintain financial stability, even in the face of challenging market conditions in the insurance sector, indicating that the company successfully retained its A- credit rating with a stable outlook from the international rating agency AM Best, positioning Takaful International as a leader among locally rated takaful companies. He also expressed appreciation for the hard work and dedication of the staff, whose efforts have played a key role in achieving this success.
Additionally, Mr. Al Ansari emphasized that the company has forged several key partnerships, these strategic collaborations further strengthen Takaful International’s market position. He also mentioned the launch of the company’s new website, which marks a significant milestone in its ongoing digital transformation journey, enhancing customer experience and streamlining services.
He finally added that as Takaful International continues to strengthen its market position through strategic partnerships and digital advancements, it remains committed to driving growth, innovation, and sustainability, while continuously enhancing value for all its stakeholders.