MANAMA: Takaful International Company has reported net profit attributable to the shareholders of the parent for the three months ended December 31, 2021 of BD227,000 compared with BD564,000 for the same period last year, a decrease of 60 per cent, and a corresponding earnings per share at 2.67 fils compared with 6.63 fils for the same period of 2020.

Total comprehensive income attributable to the shareholders of the parent for the three months ended December 31, 2021 stood at BD177,000 compared with BD589,000 for the same period of 2020 year, a decrease of 70pc.

The company reported a total net profit of BD396,000 for the fourth quarter 2021 compared with BD538,000 for the same period of 2020 with a decrease percentage of 26pc, which is attributed to lower performance of the shareholders’ fund.

The general takaful fund reported a surplus of BD102,000 in the fourth quarter 2021 compared with a deficit of BD46,000 for the same period of 2020.

Family Takaful’s fund performance achieved a surplus of BD68,000 compared with a surplus of BD19,000 for the same period of 2020.

Total gross contributions were BD4.9m in the fourth quarter 2021 compared with BD4.4m for the same period of 2020, an increase of 11pc.

Net earned contributions also increased by 8pc to BD4.669m as compared with BD4.310m for the same period of 2020.

The net incurred claims increased by 18pc to BD3.463m in the fourth quarter 2021 as compared with BD2.923m for the same period of 2020.

As for the results of the full year ended December 31, 2021, the net profit attributable to the shareholders of the parent was BD931,000 compared with BD1.144m last year, a decrease of 19pc, mainly attributed to exceptional profits attained from sale of one of the company’s assets in 2020, and corresponding earnings per share at 10.95 fils compared with 13.46 fils in 2020.

Total comprehensive income attributable to the shareholders of the parent for the year ended December 31, 2021 stood at BD912,000 compared with BD1.085m in 2020, a decrease of 16pc.

Net profit for the year ended December 31, 2021 was BD1.603m compared with BD1.544m in 2020 with an increase of 4pc, which is attributed to the improved performance of the general takaful fund which achieved a surplus of BD725,000 compared with a surplus of BD432,000 in 2020, an increase of 68pc.

The family takaful fund achieved a deficit of BD53,000 in 2021 compared with a deficit of BD31,000 in 2020.

Total gross contributions increased by 9pc to BD24.806m for the year ended December 31, 2021 compared with BD22.859m in 2020.

Net earned contributions also increased by 6pc to BD17.843m as compared with BD16.770m in 2020.

The net incurred claims increased by 4pc to BD12.222m for the year ended December 31, 2021 as compared with BD11.769m in 2020.

The company’s total equity attributable to the shareholders of the parent grew by 4pc to BD11.646m as of December 31, 2021 compared with BD11.164m as of end-2020.

Total assets of the Company increased by 11pc to BD45,587m as of 31 December 2021 compared with BD41,240m as of 31 December 2020.

Commenting, chairman Ebrahim Al Rayes 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 5pc of the paid-up capital, equivalent to 5 fils per share and aggregating BD425,000.

The dividend recommendation is subject to the Central Bank of Bahrain and AGM approvals.

Essam Al Ansari, chief executive, 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 BD45m and the policyholders’ fund achieved an overall surplus of BD856,000 as of end-2021. The shareholders’ retained earnings also increased to BD1.985m.

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 specialises in evaluating the financial solvency of insurance and reinsurance companies.

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