Takaful International posts 30% increase in net profit

Total assets increased by 14% as of end-March 2021

  
A trader is seen leaving his position during early hours after opening of the Bahrain stock market, in Manama, Bahrain June 26, 2016.

A trader is seen leaving his position during early hours after opening of the Bahrain stock market, in Manama, Bahrain June 26, 2016.

REUTERS/Hamad I Mohammed

MANAMA: Takaful International has reported a total net profit of BD457,000 for the first quarter of 2021, 30 per cent higher when compared with BD351,000 for the same period last year.

The growth is attributed to the improved performance of the general takaful fund that achieved a surplus of BD197,000 compared with a surplus of BD157,000 for the same period last year, as well as the improved performance of the shareholders’ fund which achieved a net profit of BD255,000 compared with a net profit of BD231,000 for the same period last year.

The family takaful fund achieved a profit of BD4,000 in the first quarter 2021 compared with a deficit of BD37,000 for the same period last year.

Net profit attributable to shareholders of the parent for the three months was BD255,000 as compared with BD231,000 for the same period last year, an increase of 11pc, and a corresponding earnings per share at 3 fils compared with 2.71 fils for the same period last year.

Total comprehensive income for the three months stood at BD493,000 compared with losses of BD77,000 for the same period last year.

Total gross contributions increased by 18pc to BD9.54m for the three months compared with BD8.075m for the same period last year.

Net earned contributions also increased by 7pc to BD4.467m as compared with BD4.189m for the same period last year.

Net incurred claims decreased by 1pc to BD2,874m for the three months as compared with BD2,838m for the same period last year.

Total equity attributable to the shareholders of the parent was BD11,015m as of end-March 2021 compared with BD11,164m as of end-December 2020, with a slight decrease of 1pc.

Total assets increased by 14pc to BD47,028m as of end-March 2021 compared with BD41,240m as of end-December 2020.

Commenting on the results, chairman Jamal Al Hazeem said the company was able to achieve reasonable performance during this period and that the results reflect stability despite the pandemic.

He said the company strengthened its financial position during the first quarter by allocating additional technical reserves to meet the challenges posed by the pandemic conditions.

Takaful chief executive Essam Al Ansari said the good financials achieved are the result of policies and strategies adopted.

He added that the company provided a number of insurance covers during the past months to provide insurance options with Islamic solutions that suit the various needs of individuals and institutions.

The figures for the first quarter of 2020 are unreviewed. This was pursuant to the Central Bank of Bahrain’s exemption for public shareholding companies from the preparation and publication of the quarterly reviewed financial results for the first quarter of 2020 as a measure to ease difficulties due to the pandemic.

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