Takaful International net profit surges 21% to BD 1.513 million

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Helped by strong performance of its funds, Takaful International Company reported quarterly and full year 2023 profits that surged from a year ago.

Based on which, the Board of Directors decided to submit a recommendation to distribute cash dividends at the rate of 7.5% of the paid-up capital, which is equivalent to 7.5 Fils per share, totaling BD 637,500.

Quarterly results

Fourth quarter net profit attributable to the shareholders for the three months ended 31st December 2023 was BD 264K compared to BD 213K for the same period last year, an increase of 24%, and corresponding earnings per share was 3.11 Fils compared with 2.51 Fils for the same period last year.

Total comprehensive income stood at BD 548K compared to BD 288K for the same period last year, an increase of 90%.

Total net profit was BD 363K compared to BD 255K for the same period last year with an increase of 42%, which is mainly attributed to higher performance of the participants’ takaful funds which achieved a surplus of BD 99K compared to BD 42K for the same period last year, with an increase of 136%.

The shareholders’ fund reported a profit of BD 264K in the fourth quarter 2023 compared to a profit of BD 213K for the same period last year, an increase of 24%.

Full year results

Full year 2023 net profit attributable to the shareholders was BD 937K compared to BD 858K last year, an increase of 9%. Corresponding earnings per share was 11.03 Fils compared with 10.09 Fils last year.

Total comprehensive income for the year ended 31st December 2023 stood at BD 969K compared to BD 762K last year, an increase of 27%.

Net profit was BD 1,513m compared to BD 1,253m last year with an increase of 21%, which is attributed to the improved performance of the shareholders’ fund which achieved a profit of BD 937K compared to BD 858K last year with an increase of 9%, and the improved performance of the participants’ takaful funds which achieved a surplus of BD 575K compared to a surplus of BD 395K last year, an increase of 46%.

Ebrahim Al-Rayes, Chairman of the Board, stated that the company’s financial results for the year 2023 came in line with the financial projections approved by the Board, and that the company was able to achieve good growth in income from insurance operations, especially the investment operations, which witnessed a noticeable improvement in the performance of shareholders’ and participants’ funds, as the company achieved a net investment income of BD 1,217m compared to BD 661K dinars for last year, an increase of 84%, out of which the company’s shareholders share was BD 595K and the participant’s funds share was BD 210K, which led to an improvement in shareholders’ income as well as the surplus of the participants’ funds, where the accumulated surplus of the participants’ funds reached BD 801K, compared to BD 182K last year.

Essam Mohammed Al Ansari - CEO, commented on the company’s financial results, explaining that these results reflect the company’s ability to achieve financial stability despite the conditions in the insurance market, indicating that the company was able to maintain its credit rating of A- with a stable outlook from the international rating agency AM Best, which places the company on the top of the list of locally rated takaful companies.