Takaful Q2, H1 profits rise

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Takaful International reported a jump in its second quarter and half-yearly profits helped mainly by improved performances of its General Takaful and Shareholders’ funds despite the repercussions of the COVID-19 pandemic.

The results achieved are the outcomes of the underwriting and investment policies pursued by the company, said Jamal Ali Al-Hazeem, the Chairman of the Board of Directors. He added: “We were able to deal with the exceptional circumstances that affected the performance of the International Financial Markets, explaining that the company had increased its technical and investment reserves to achieve stable long-term performance.”

Essam Al-Ansari, CEO of the company, said the company improved its online point of sale services to facilitate customer transactions during the COVID-19 pandemic and updated its mobile application to support minor traffic accidents.

Second-quarter results

The net profit attributable to the shareholders of the parent for the three months ended 30 June 2021 was BD 226K compared to BD 129K for the same period last year, an increase of 75%, earnings per share was 2.66 Fils compared with 1.52 Fils for the same period last year.

Total comprehensive income attributable to the shareholders of the parent stood at BD 253K compared to BD 275 for the same period last year, a decrease of 8%.

The total net profit was BD 289K, up 42% from BD 203K in the same period last year. The company attributed the increase to the improved performance of the General Takaful fund that achieved a surplus of BD 131K compared to a surplus of BD 82K for the same period last year, and the shareholders’ fund which achieved a net profit of BD 226K compared to a net profit of BD 129K for the same period last year.

The Family Takaful fund achieved a deficit of BD 68K in the second quarter of 2021 compared to a deficit of BD 8K for the same period last year. Total gross contributions were BD 5.414m in the second quarter of 2021 compared to BD 5.727m for the same period last year, a decrease of 6%.

Six-month results

Net profit attributable to the shareholders of the parent was BD 482K compared to BD 360K for the same period last year, an increase of 34%. Earnings per share at 5.67 Fils compared with 4.23 Fils for the same period last year. Total comprehensive income attributable to the shareholders of the parent was BD 529K compared to BD 256 for the same period last year, an increase of 107%.

Net profit was BD 746k compared to BD 553K for the same period last year with an increase of 35%. Takaful International attributed the increase to the improved performance of the General Takaful fund which achieved a surplus of BD 329K compared to a surplus of BD 239K for the same period last year, an increase of 38%, and the improved performance of the shareholders’ fund which achieved a net profit of BD 482K in the six months ended 30 June 2021 compared to a net profit of BD 360K for the same period last year.

The Family Takaful fund achieved a deficit of BD 65K in the current period compared to a deficit of BD 46K for the same period last year.

Total gross contributions increased by 8% to BD 14.954m for the six months ended 30 June 2021 compared to BD 13.801m for the same period last year.

Net earned contributions also increased by 6% to BD 8.740m as compared to BD 8.255m for the same period last year. The net incurred claims decreased by 1% to BD 5.857m for the six months ended 30 June 2021 as compared to BD 5.936m for the same period last year.