The Board of Directors of Takaful International Company B.S.C. (Trading Code: TAKAFUL) approved the financial results for the period ended 30 September 2023, which were presented in accordance with the new 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.

 

Financial results for the three months ended 30th September 2023

The net profit attributable to the shareholders for the three months ended 30 September 2023 was BD 245K compared to BD 320K for the same period last year, a decrease of 23%, and a corresponding earnings per share of 2.88 Fils compared with 3.77 Fils for the same period last year. Total comprehensive income for the three months ended 30 September 2023 stood at BD 118K compared to BD 451k for the same period last year, a decrease of 74%.

 

The Company reported a total net profit of BD 498K during the third quarter of the year 2023 compared to BD 100K for the same period last year. The participants’ Takaful funds achieved a surplus of BD 253k in the third quarter of the year 2023 compared to a deficit of BD 220K for the same period last year. The shareholders’ fund achieved a net profit of BD 245K compared to a net profit of BD 320K for the same period last year, a decrease of 23%.

 

Recognized Takaful Contributions were BD 5.922m in the third quarter of the year 2023 compared to BD 5.571m for the same period last year, an increase of 6%. Recognized Takaful Costs also decreased by 11% to BD 4.321m in the third quarter of the year 2023 as compared to BD 4.832m for the same period last year.

 

Financial results for the nine months ended 30th September 2023

As for the results of the nine months ended 30 September 2023, the net profit attributable to the shareholders was BD 673K compared to BD 645K for the same period last year, an increase of 4%, and a corresponding earnings per share of 7.92 Fils compared with 7.58 Fils for the same period last year. Total comprehensive income for the nine months ended 30 September 2023 stood at BD 421K compared to BD 473K for the same period last year, an increase of 11%.

 

Net profit for the nine months ended 30 September 2023 was BD 1.149m compared to BD 998k for the same period last year with an increase of 15%. The Participants’ Takaful funds achieved a surplus of BD 476K compared to a surplus of BD 353K for the same period last year, aa increase of 35%. The shareholders’ fund achieved a net profit of BD 673K in the nine months ended 30 September 2023 compared to a net profit of BD 645K for the same period last year with an increase of 4%.

 

Recognized Takaful Contributions increased by 2.4% to BD 18.204m for the nine months ended 30 September 2023 compared to BD 17.766m in the same period last year. Recognized Takaful Costs slightly increased by 1.5% to BD 14.061m for the nine months ended 30 September 2023 as compared to BD 13.843m in the same period last year.

 

The Company’s total equity grew was flat at BD 11.544m as of 30 September 2023 compared to BD 11.547m as of 31 December 2022.

Total assets of the Company increased by 6% to BD 40.882m as of 30 September 2023 compared to BD 38.503m as of 31 December 2022.

 

Board of Directors Statement

In light of the Company’s financial results announced, Mr. Ebrahim Al Rayes, Chairman of the Board of Directors, commented that the Board of Directors are satisfied with the financial performance results for the nine months ended 30 September 2023, that were in line with the budget approved by the Board of Directors at the end of last year. The Company’s financial performance results were achieved despite the continuous rise in loss ratios in the market, and the accounting impact resulting from the adoption of new accounting standards, which affected the approach used in determining allocations and technical reserves. This comes at a time when the Board of Directors is pushing towards integrating environmental, social and governance factors in the insurance sector in order to achieve sustainable growth, especially with regard to the insurance sector, while the company is counting on spreading responsible awareness and exploring innovative solutions to integrate sustainability principles into the insurance sector, as the company will organize a first of its kind event in the Kingdom next month to promote sustainability in the insurance sector.

 

CEO Statement

Mr. Essam Al-Ansari, CEO of the Company, said that the Company continued its good performance and was able to maintain its financial strength that contributed to the affirming of the company (A-) stable from the international rating agency AM Best, being the only Islamic insurance company with a rating of A-. The company continues to maintain its leadership in the financial and credit ratings categories in the Kingdom, which reflects the strength of the financial position and the efficiency of operational performance. He added that we are proud to announce that we are the first public company implementing the new accounting standards FAS 43, 43 and 30 issued by the Accounting and Auditing Organization for Islamic Financial Institutions. He also added that as part of the company’s efforts to improve the services provided to the customers, a new branch for motor claims was opened in Dana Mall by the end of the third quarter. The branch was designed to provide comfort and ease of access for the company’s customers. The branch operates six days a week to provide an outstanding experience for our customers.