Solidarity Bahrain net profit up 39%

Solidarity Bahrain has announced net profit of BD1.152 million for the three-month period ended 2022, compared to BD827,000 for the same period in 2021, an increase of 39 per cent.

The company is one of the largest insurers in Bahrain and a subsidiary of Solidarity Group Holding.

The earning per share for the three-month period ended December 31, 2022 was 8.64 fils compared to 6.89 fils for the same period in 2021.

The net profit for 2022 was BD3.734m compared to BD2.885m for the same period in 2021, representing a 29pc increase.

The growth is the result of improved technical surplus, investment income, and performance of the shareholders’ fund.

The earning per share for the 12-month period ended December 31, 2022 increased to 28.22 fils compared to 24.05 fils for the same period in 2021.

The total net profit and surplus for the three-month period ended December 31, 2022 was BD1.414m compared to BD1.019m for the same period in 2021, representing a 39pc increase.

The total net profit and surplus for 2022 was BD4.561m compared to BD3.308m for the same period in 2021, representing a 38pc increase.

The shareholders’ equity as of end-2022 was BD32.784m, compared to BD29.953m as of December 31, 2021, representing a 9pc increase.

Total assets as of December 31, 2022 was BD99.507m compared to BD72.640m as of December 31, 2021, representing a 37pc increase.

The policyholders’ fund reported a net surplus of BD262,000 for the three-month period ended December 31, 2022, compared to a BD192,000 surplus for the same period in 2021, representing an increase of 36pc.

The fund’s net surplus for 2022 was BD827,000, compared to a BD423,000 surplus for the same period in 2021, representing an increase of 96pc.

A gross premium of BD14.224m was registered for the three-month period ended December 31, 2022 compared to BD8.825m for the same period last year, representing an increase of 61pc.

The gross contribution for 2022 was BD46.228m compared to BD31.629m for the same period in 2021, representing an increase of 46pc.

The board of directors has proposed cash dividend of 20pc of the paid-up capital, equivalent to 20 fils per share amounting to BD2,665,075 (net of treasury shares).

The dividend recommendation is subject to the approval of the related regulatory authorities and the company’s shareholders in the upcoming annual general meeting.

Commenting on the performance, chairman Shaikh Khalid bin Mustahail Al Mashani said: “We are pleased to conclude the year building on the successes of the recent merger with T’azur and the acquisition of the controlling stake by Al Salam Group. The company has demonstrated robust growth with an increase of 38pc in net profits and surplus, reflecting the success of the company’s strategic objectives.”

Noting the “solid growth during 2022, despite the challenging market conditions,” he added that the merger with T’azur enabled Solidarity to capitalise the growth opportunities in the insurance market, expressing the hope that the year ahead would further cement Solidarity’s position as “one of the leading insurance companies in the region.”

Jawad Mohammed, chief executive of Solidarity, commented: “Solidarity Bahrain’s strong financial performance accentuates the success of the company’s merger and acquisition initiatives as well as organic growth driven by digital transformation. The company’s digital innovation during this year has resulted in receiving two prestigious awards for insurance and digital innovation. This reflects the outstanding performance of our human capital and their committed efforts in providing customers and business partners with the best of products and services within the insurance sector in the kingdom.”