Takaful announces financial results for first quarter of 2016

Manama: Takaful International Company has announced its first quarter results for financial year 2016, showing a quarterly consolidated results with a total profit of BD136K, compared to losses of BD181K for the same period of the previous year 2015.

The results come after a decrease in the deficit of the General Takaful Fund and the increase of Family Takaful Fund surplus as well as lower profits generated by the Shareholders’ Fund. 

General Takaful operations have achieved an improvement in performance compared to the previous year where the deficit in the Fund’s operations was BD55K, compared to a deficit of BD425K in the previous year. The surpluses rose from the Family Takaful operations to reach BD62K, compared to a surplus of BD43K for the same period of the previous year. The shareholders’ net profit amounted to BD129, compared with a profit of BD201 of the same period of the previous year.

According to a company statement, the significant improvement in the results of each of the General and Family Funds were due to changes in underwriting and administrative policies leading to a decline in losses by more than 87pc in the General Fund and an increase in Family Fund surpluses by 44pc compared to the previous period.

The decline in the shareholders’ net profit, according to the company, was mainly due to the company’s exit from an investment during 2015, for which the company reported an exceptional income. The statement also said Takaful was able to reduce the administrative expenses by as much as 31pc. 

Younis Jamal Alsayed, CEO, explained that the company has taken a more conservative underwriting approached for both Health Care and Motor Takaful, with Motor Takaful portfolio decreasing by 11pc from the previous year 2015. 

The CEO had also explained that the company had prioritized its efforts on increasing its underwriting of Family Takaful products, achieving a growth of 19pc as compared to the previous year 2015. Over all, the Takaful total gross written contributions for the period ended March 31, 2016 reached BD7,535,876 compared to BD7,094,601 in the same period of the previous year, representing a growth of 6pc. Net loss ratio also witnessed a marked improvement, which fell to a 75pc compared to a rate of 88pc in the same period of the previous year.