The Board of Directors of Takaful International Company B.S.C. (Trading Code: TAKAFUL) approved the financial results for the period ended 30 June 2024, which were presented in accordance with the Financial Accounting Standards (FAS) 42 & 43 and 30, issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) which are equivalent to the International Financial Reporting Standards IFRS 17 and IFRS 9.

The financial results for the three months ended 30 June 2024

The net profit attributable to the shareholders was BD 162K for the three months ending on 30 June 2024, a significant increase of 277% from the net profit of BD 43K for the same period in the previous year. Comparatively, earnings per share increased to 1.9 Fils from 0.5 Fils for the same period in the previous year. Total comprehensive income attributable to the shareholders of the Company for the three months ended 30 June 2024 surged to BD 79K compared to a total comprehensive loss of BD 80K for the same period in the previous year.

The Company reported a total net profit of BD 211K during the second quarter of the year 2024 compared to BD 168K for the same period in the previous year, with an increase of 26%. The shareholders’ fund achieved a profit of BD 162K during the second quarter of the year 2024, compared to a profit of BD 43K for the same period of the previous year, a significant increase of 277%. This increase is attributed to the improved income generated from the investment portfolio during the quarter. The General and Family Takaful Funds achieved a surplus of BD 49K during the second quarter of 2024, compared to a surplus of BD 125k for the same period of the previous year, which decreased by 61%. This decline in the performance of the two Takaful funds is mainly due to an increase in claims reserve during the period compared to the corresponding period of the previous year.  

Recognized takaful contributions were BD 6.425 million for the three months period ending on 30 June 2024, compared to BD 5.848 million for the same period of the previous year, an increase of 10%. Recognized Takaful Costs were BD 5.195 million during the three months period ending on 30 June 2024 compared to BD 4.416 million in the same period of the previous year, with an increase of 18%.

The financial results for the six months ended 30 June 2024

The shareholders’ net profit was BD 555K for the six months ending on 30 June 2024, an increase of 30% from the net profit of BD 428K for the same period in the previous year. Comparatively, earnings per share increased to 6.52 Fils from 5.04 Fils for the same period in the previous year. The comprehensive income attributable to the shareholders of the Company for the six-month period ending on 30 June 2024, was BD 424K, compared to a profit of BD 303K for the same period of the previous year, an increase of 40%.

The Company reported a total net profit of BD 757K during the six months ending on 30 June 2024 compared to BD 651K for the same period of the previous year, with an increase of 16%. The shareholders’ fund achieved a profit of BD 555K during the six months ending on 30 June 2024, compared to a profit of BD 428K for the same period of the previous year, an increase of 30%.

Recognized Takaful contributions were BD 12.314 million for the six months ending on 30 June 2024, compared to BD 12.282 million for the same period of the previous year, a slight increase of 0.3%. Recognized Takaful Costs were BD 9.905 million during the six months period ending on 30 June 2024, compared to BD 9.740 million in the same period of the previous year, with an increase of 2%.

The company’s shareholders equity amounted to BD 11.873 million as of 30 June 2024, compared to BD 12.086 million as of 31 December 2023, a decrease of 2%, mainly due to the distribution of dividends.

The company's total assets slightly increased by 1% to BD 42.030 million as of 30 June 2024, compared to BD 41.590 million as of 31 December 2023.

Board of Directors’ Comments

Commenting on the financial results, Mr. Ebrahim Al-Rayes, Chairman of the Board of Directors, stated, “Takaful International's strong performance in the first half of the year is a clear indicator of the company's ability to deliver excellent results despite market challenges. In addition to our commitment to strategic investments that drive long-term growth and enhance shareholder value. Furthermore, I am gratified by the company's ongoing progress in environmental, social, and governance (ESG) initiatives. These efforts underscore our dedication to sustainable business practices. As we look ahead, the Board maintains a cautiously optimistic outlook and remains committed to pursuing innovative growth opportunities that maximize shareholder value and strengthen our market position.”

Chief Executive Officer’s Comments

Mr. Essam Al-Ansari, CEO of the company, added: “Our solid results reflect the exceptional dedication and hard work of our team. We are particularly proud to have formed a dedicated ESG committee that will help strengthen our sustainability efforts and ensure we continue to be responsible corporate citizens. In addition, we have signed strategic alliances with our market partners, aiming to enhance our customer experience and improve our service and products. Takaful International remains steadfast in its commitment to delivering exceptional value to shareholders while upholding the highest standards of corporate responsibility.”