Solidarity Bahrain 2021 net profit grows 7%, proposes 20% dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Solidarity Bahrain, one of the largest insurance companies in Bahrain and a subsidiary of Solidarity Group Holding, has announced a net profit attributed to shareholders’ fund of BD 827 thousand for the three months ended 31st December 2021, compared to BD 710 thousand for the same period in 2020, representing an increase of 16%.

The earning per share is 6.89 fils compared to 5.92 fils for the same period in 2020. The total comprehensive income attributed to shareholders’ funds is BD 878 thousand compared to BD 885 thousand for the same period in 2020, representing a 1% decrease.

The total net profit and surplus for the three months of 31st December 2021 are BD 1.019 million compared to BD 947 thousand for the same period in 2020, representing an increase of 8%.

 With regards to policyholder’s fund, Solidarity reported a net surplus of BD 192 thousand, as compared to BD 237 thousand surpluses in the year-ago quarter, a decrease of 19%. The gross premium was BD 8.825 m compared to BD 7.917 m for the corresponding previous period, representing an increase of 11%.

Full-year results

The net profit attributed to shareholders’ fund is BD 2.885 m against a net profit of BD 2.685 m a year ago, representing a 7% increase which is the result of improved performance of the shareholders’ fund. Earning per share increased to 24.05 fils compared to 22.38 fils for the same period in 2020. T,

The total comprehensive income attributed to shareholders’ funds is BD 3.723 m compared to BD 2.860 m for the same period in 2020, representing a 30% increase. The total net profit and surplus are BD 3.308 m compared to BD 3.079 m for the same period in 2020, representing a 7% increase which is the result of improved underwriting performance. With regards to policyholder’s fund, the net surplus was BD 423 thousand, as compared to the BD 394 thousand surpluses last year, representing an increase of 7%.

The increase in the overall net profits is mainly due to the improvement in technical results and investment income in 2021 as compared to the corresponding previous period. The gross contribution is BD 31.629 m compared to BD 30.204 m for the corresponding previous period, representing an increase of 5%.

Cash Dividend

The Board of Directors proposed to distribute a cash dividend of 20% of the paid-up capital, equivalent to 20 Fils per share amounting to BD 2,398,408 (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.

“optimistic outlook”

Commenting on Solidarity’s performance for 2021, Tawfeeq Shehab, Chairman to the board of directors said: “The Board is pleased to report the positive financial results for 2021, and these positive results are the outcome of Company’s investment in its infrastructure and human capital as well as the constant efforts put forth by our diligent workforce.” Jawad Mohammed, Chief Executive Officer, Solidarity Bahrain commented: “We have an optimistic outlook for Solidarity, and we look forward to another successful year ahead. We are pledged to provide an unparalleled customer experience, with unmatched innovative solutions”.