The Board of Directors of Takaful International Company B.S.C. (Trading Code: TAKAFUL) approved the financial results for the period ended March 31, 2023, which were presented for the first time in accordance with the new Financial Accounting Standards (FAS) 42 & 43 and 30, issued by the Accounting and Auditing Organization for Islamic Organization (AAOIFI) which are equivalent to the International Financial Reporting Standards IFRS 17 and IFRS 9. The net profit of the shareholders was BD 386K for the three months ending on March 31, 2023, a 48% increase from the net profit of BD 260K for the same period in the previous year. Comparatively, earnings per share increased to 4.5 Fils from 3.1 Fils for the same period in the previous year. The comprehensive income for the three-month period ending on March 31, 2023, was BD 381K, an increase of 67% compared to BD 228k for the same period the previous year.

 

The Company reported a total net profit of BD 483K during the first quarter of the year 2023 compared to BD 671K for the same period in the previous year, a decrease of 28%. The shareholders’ fund achieved a profit of BD 386K during the first quarter of the year 2023, compared to a profit of BD 260K for the same period of the previous year, an increase of 48%. The Takaful Funds achieved a surplus of BD 97k during the first quarter of 2023, compared to a surplus of BD 411k for the same period of the previous year, which decreased by 59%. This decline in the performance of the Takaful Funds is attributed to the implementation of the new accounting standards, in particular those of the actuarial nature that are subject to estimates and earning patterns.

 

Recognized Takaful contribution was BD 6.435 million for the period ending on March 31, 2023, compared to BD 6.208 million for the same period of the previous year a growth of 4%. Recognized Takaful Costs increased to BD 5.324 million during the period ending on March 31, 2023, from BD 4.129 million in the same period of the previous year, an increase of 29%.

 

The company’s shareholders equityamounted to BD 11.504 million as of March 31, 2023, compared to BD 11.547 million as of December 31, 2022, a slight decrease of 4%.

 

The company's total assets increased by 6% from BD 38.503 million as of December 31, 2022, to BD 40.644 million as of March 31, 2023.

 

Commenting on the announced financial results, Mr. Ebrahim Al Rayes, Chairman of the Board of Directors of the Company, stated that the Company had achieved good results in Takaful and investment operations and that the Company had taken the initiative to adopt the new Islamic Accounting Standards issued by the Accounting and Auditing Organization For Islamic Organization (AAOIFI) for insurance companies, which gave the Islamic financial institutions the option for early adoption starting from the current year, with an effective date for implementation in the year 2025. He added that the Company’s Board of Directors opted for early adoption in support of transparency and the implementation of effective corporate governance standards as this form an integral part of the Company’s core values, including the Company’s commitment towards the Takaful industry as a whole.

 

The Chairman also explained that the implementation of the new accounting standards FAS 42 & 43 and 30, which are equivalent to the International Financial Reporting Standards IFRS 17 and IFRS 9, had triggered a reclassification of some of the items of the financial statements, as well as the reassessment of the financial and technical provisions which had impacted the Company's financial position. 

 

For his part, Mr. Essam Al Ansari, the Company's chief executive officer, noted that the Company has always taken the lead in supporting the Takaful industry, whether by sponsoring conferences specializing in Takaful or adopting professional projects specializing in the Takaful industry, particularly the early adoption of Sharia standards and accounting standards based on our commitment towards solid institutional work. Despite the impact of applying these standards on operational performance, the business was able to achieve good results. This effect is not anticipated to recur, and it is hoped that levels will return to normal by the end of the fiscal year.

 

He added that the Company, in conjunction with the implementation of the new standards, launched the most advanced information system at the beginning of April, which is regarded as one of the best systems specializing in insurance and reinsurance operations, and has gained the trust of customers and all stakeholders, as well as the fact that issuing insurance policies electronically has become simple and accessible. The Company will introduce new features and services to support its ongoing digital transformation initiative in the coming months.

 

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.