Takaful International Company has reported net profit for the three months ended December 2020 of BD564,000 compared with BD185,000 for the same period in the previous year, an increase of 205 per cent, and a corresponding earnings per share at 6.63 fils compared with 2.18 fils.
Total comprehensive income for the three months stood at BD589,000 compared with BD257,000 for the same period of 2019, an increase of 129pc.
Total net profit of BD538,000 for the fourth quarter of 2020 compared with BD221,000 for the same period of 2019 with an increase percentage of 143pc, which is attributed to the improved performance of the shareholders’ fund which achieved a net profit of BD564,000 compared with a net profit of BD185,000 for the same period in 2019, Family Takaful’s fund performance that achieved a surplus of BD19,000 compared with a surplus of BD12,000.
The general takaful fund reported a deficit of BD46,000 in the fourth quarter 2020 compared with a surplus of BD24,000 for the same period in the previous year.
Total gross contributions were BD4.3 million in the fourth quarter 2020 compared with BD4.6m for the same period in 2019, a decrease of 6pc.
For the year ended December 2020, net profit was BD1.144m compared with BD690,000 in 2019, an increase of 66pc, and a corresponding earnings per share at 13.46 fils compared with 8.12 fils.
Total comprehensive income for 2020 stood at BD10,85,000 compared with BD9,01,000 in 2019, an increase of 20pc.
Net profit for the year was BD1.544m compared with BD1.031m in 2019 with an increase percentage of 50pc, which is attributed to the improved performance of the shareholders’ fund which achieved a net profit of BD11,44,000 compared with a net profit of BD6,91,000, an increase of 66pc, as well as the improved performance of the general takaful fund which achieved a surplus of BD432,000 compared with a net profit of BD316,000 in 2019.
The family takaful fund achieved a deficit of BD31,000 last year compared with a surplus of BD24,000 in 2019.
Total gross contributions increased by 5pc to BD22.859m for 2020 compared with BD21.721m in 2019.
Net earned contributions also increased by 7pc to BD16.770m compared with BD15.649m in 2019.
Net incurred claims increased slightly by 3pc to BD11.769m for 2020 compared with BD11.417m in 2019.
The company’s total equity grew by 11pc to BD11.164m as of end-2020 compared with BD10.079m as of end-2019.
Total assets increased by 8pc to BD41.240m as of end-2020 compared with BD38.288m as of end-2019.
Commenting, the board of directors praised the good results achieved despite the challenging circumstances witnessed worldwide, particularly in the financial sector.
Adoption of advanced technologies contributed to maintaining the quality of services provided to customers.
The board has recommended a cash dividend of 5pc of the paid-up capital, equivalent to five fils per share and aggregating BD425,000.
The company’s chief executive Essam Al Ansari said it efficiently dealt with the exceptional circumstances that the Bahrain insurance market was going through.
“The outstanding profit achieved was a result of the good performance in the various insurance portfolios in addition to the exceptional profits of BD538,000 attained from the sale of one of the company’s assets. Further, the company increased its investment provisions and the receivable balances provisions during the year by more than 250pc compared with 2019. The company also increased the technical reserves for family takaful and the claims reserves of general takaful by 51pc compared with 2019.”
Mr Al Ansari said the results contributed to the re-accreditation of the company’s credit rating as excellent (A-) by AM Best, which specialises in evaluating the financial solvency of insurance and reinsurance companies.
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