Takaful Q1 profit surges 48%

TDT | Manama                                                

The Daily Tribune – www.newsofbahrain.com     

Takaful International Company yesterday reported a 48% surge in its first quarter 2023 profit, helped by improved performance of its Shareholders’ fund.

The company’s net profit of the shareholders for the quarter was BD 386K, up from BD 260K in the same quarter a year ago.

Earnings per share rose to 4.5 Fils from 3.1 Fils in the prior-year quarter. Takaful’s first quarter comprehensive income was BD 381K, a 67% jump from BD 228k in the year-ago quarter.

Total net profit was BD 483K compared to BD 671K for the same quarter in the previous year, a decrease of 28%.

Shareholders’ fund achieved a profit of BD 386K, compared to BD 260K for the same period of the previous year, an increase of 48%.

The Takaful Funds achieved a surplus of BD 97k, compared to BD 411k for the same period of the previous year, which decreased by 59%.

This decline in the performance of the Takaful Funds is attributed to the implementation of the new accounting standards.

Recognised Takaful contribution was BD 6.435 million, a 4% increase from BD 6.208 m in the same quarter a year ago.

Recognised Takaful Costs increased to BD 5.324 m from BD 4.129 m in the same period of the previous year, an increase of 29%.

Ebrahim Al Rayes, Chairman of the Board of Directors of the Company, said the implementation of the new accounting standards FAS 42 & 43 and 30, which are equivalent to the International Financial Reporting Standards IFRS 17 and IFRS 9, had triggered a reclassification of some of the items of the financial statements, as well as the reassessment of the financial and technical provisions which had impacted the company’s financial position.

Essam Al Ansari, chief executive officer, noted that despite the impact of applying these standards on operational performance, the business was able to achieve good results.

This effect is not anticipated to recur, and it is hoped that levels will return to normal by the end of the fiscal year.

He added that the Company will introduce new features and services to support its ongoing digital transformation initiative in the coming months.