Takaful International achieves net profit of BD 1,603 million for the year 2021 with an increase of 4%

 

The Board of Directors of Takaful International Company B.S.C. (Trading Code: TAKAFUL) approved the financial results for the year ended 31 December 2021. The net profit attributable to the shareholders of the parent for the three months ended 31 December 2021 was BD 227K compared to BD 564k for the same period last year, a decrease of 60%, and a corresponding earnings per share at 2.67 Fils compared with 6.63 Fils for the same period last year. Total comprehensive income attributable to the shareholders of the parent for the three months ended 31 December 2021 stood at BD 177k compared to BD 589k for the same period last year, a decrease of 70%.

 

The Company reported a total net profit of BD 396K for the fourth quarter 2021 compared to BD 538K for the same period last year with a decrease percentage of 26%, which is attributed to lower performance of the shareholders’ fund. The General Takaful fund reported a surplus of BD 102K in the fourth quarter 2021 compared to a deficit of BD 46K for the same period last year. Family Takaful’s fund performance achieved a surplus of BD 68K compared to a surplus of BD 19K for the same period last year.

 

Total gross contributions were BD 4.9m in the fourth quarter 2021 compared to BD 4.4m for the same period last year, an increase of 11%. Net earned contributions also increased by 8% to BD 4.669m as compared to BD 4.310m for the same period last year. The net incurred claims increased by 18% to BD 3.463 in the fourth quarter 2021 as compared to BD 2.923m for the same period last year.

 

As for the results of the full year ended 31 December 2021, the net profit attributable to the shareholders of the parent was BD 931k compared to BD 1,144m last year, a decrease of 19%, mainly attributed to exceptional profits attained from sale of one of the Company’s assets in 2020, and a corresponding earnings per share at 10.95 Fils compared with 13.46 Fils last year. Total comprehensive income attributable to the shareholders of the parent for the year ended 31 December 2021 stood at BD 912k compared to BD 1.085m last year, a decrease of 16%.

 

Net profit for the year ended 31 December 2021 was BD 1,603m compared to BD 1,544m last year with an increase of 4%, which is attributed to the improved performance of the General Takaful’s fund which achieved a surplus of BD 725K compared to a surplus of BD 432K last year, an increase of 68%. The Family Takaful fund achieved a deficit of BD 53K this year compared to a deficit of BD 31K last year.

 

Total gross contributions increased by 9% to BD 24.806m for the year ended 31 December 2021 compared to BD 22,859m last year. Net earned contributions also increased by 6% to BD 17,843m as compared to BD 16,770m last year. The net incurred claims increased by 4% to BD 12,222m for the year ended 31 December 2021 as compared to BD 11,769m last year.

 

The Company’s total equity attributable to the shareholders of the parent grew by 4% to BD 11,646m as of 31 December 2021 compared to BD 11,164m as of 31 December 2020.

 

Total assets of the Company increased by 11% to BD 45,587m as of 31 December 2021 compared to BD 41,240m as of 31 December 2020.

 

Commenting on the announced financial results, Mr. Ebrahim Al Rayes - Chairman of the Board of Directors, praised the achieved results despite the challenging circumstances witnessed worldwide, particularly in the financial sector, adding that the Company grew its takaful contributions, shareholders’ profits, and policyholders’ surplus. He also added that the Company has provided a number of insurance covers with Islamic solutions during the year 2021 to meet the needs of individuals and institutions, which was aimed at improving the Company’s services.

 

The Chairman also pointed out that the Board of Directors recommended a cash dividend distribution of 5% of the paid-up capital, equivalent to 5 Fils per share and aggregating BD 425,000. The dividend recommendation is subject to the Central Bank of Bahrain’s and the AGM approvals.

 

Mr. Essam Mohammad Al-Ansari, Chief Executive Officer, explained that the Company’s financial results reflect its ability to adapt with any exceptional circumstances, given its excellent performance despite the current insurance market conditions. We were able to improve the technical reserves and diversify our takaful portfolios, which has positively reflected on the Company's financial position strength. The Company's total assets reached BD 45m and the policyholders’ fund achieved an overall surplus of BD856k as at the end of 2021. The shareholders' retained earnings also increased to BD1.985 million.

 

Mr. Al Ansari added that the results achieved by the Company contributed to the affirmation of its financial strength rating of (A-) Excellent and the credit rating of (A-) with a stable outlook from the international rating agency AM Best, which specializes in evaluating the financial solvency of insurance and reinsurance companies.

 

Takaful International Company B.S.C. is the first Islamic Insurance Company in Bahrain. It was established in 1989. The Company provides a wide range of insurance covers and products consistent with the principles of Islamic Shari’a that serves the various needs of individuals and corporates. The Company is a subsidiary of gig-Bahrain and is assigned a rating of A- Excellent by AM Best Credit Rating Agency.

 

The full set of financial statements is available on Bahrain Bourse’s website.