Solidarity Bahrain announces 11% increase in net profit

MANAMA: Solidarity Bahrain, a subsidiary of Solidarity Group Holding, has announced a net profit attributed to shareholders’ fund of BD666,000 for the three-month period ended June 30, 2021, compared to BD599,000 for the same period in 2020, representing an increase of 11 per cent.

The earning per share for the three-month period is 5.55 fils compared to 4.99 fils for the same period in 2020.

The net profit attributed to shareholders’ fund for the six-month period ended June 30, 2021 is BD1.439 million against a net profit of BD1.360m for the corresponding previous period, representing 6pc increase which is the result of improved technical surplus, investment income and performance of the shareholders’ fund.

The earning per share for the six-month period has increased to 12 fils compared to 11.34 fils for the same period in 2020.

Shareholders’ equity as of end-June 2021 is BD28.103m as compared to BD28.328m as of end-2020 representing 1pc decrease.

Total assets as of en-June 2021 is BD71.980m as compared to BD68.139m as of end-2020, representing 6pc decrease.

The total net profit and surplus for the three-month period is BD717,000 compared to BD623,000 for the same period in 2020, representing 15pc increase.

The total net profit and surplus for the six-month period is BD1.560m compared to BD1.413m for the same period in 2020, representing 10pc increase.

With regards to policyholders fund, Solidarity has reported a net surplus of BD51,000 for the three-month period, as compared to BD24,000 surplus for the same period in 2020, representing an increase of 113pc.

Solidarity has reported a net surplus of BD121,000 for the six-month period, as compared to the BD53,000 surplus for the same period last year, representing an increase of 128pc.

Solidarity has registered gross premium of BD7.321m for the three-month period compared to BD7.447m for the corresponding previous period, representing a decrease of 2pc.

The gross contribution for the six-month period is BD15.634m compared to BD15.483m for the corresponding previous period, representing an increase of 1pc.

Commenting, chairman Tawfeeq Shehab said: “The board of directors is pleased with the interim results for the second quarter of 2021. The merger between Solidarity and T’azur (Bahrain operations only) is proceeding according to plan and schedule and the T’azur board of directors has resolved to accept the offer as submitted via the letter of firm intention, representing binding execution which has been received by Solidarity. The boards of both Solidarity and T’azur shall invite the shareholders to hold an extraordinary general meeting of both companies within a reasonable period of time to present the merger and related clauses to obtain shareholder approval.”

Jawad Mohamed, chief executive at Solidarity Bahrain, said: “We are glad with our positive financial results and remain committed to delivering growth in revenues, profits, and providing elevated services to customers and business partners.”

He added: “Solidarity Bahrain is celebrating its 45th year of excellence, care and experience as one of the leading insurers. The company operates according to a clear strategy towards continuous growth through its network of branches, offices, and partners across Bahrain, in addition to strengthening its leading role in the community through its social responsibility strategy.”

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