Solidarity Bahrain, one of the largest insurance companies in Bahrain and a subsidiary of Solidarity Group Holding, has disclosed a net profit attributable to shareholders of BD1.274 million for the three-month period ending December 31, 2023.
This figure reflects an 11 per cent increase compared to the same period in 2022, where the net profit was BD 1.152m. Earnings per share for this quarter stood at 9.56 fils, compared to 8.64 fils in 2022.
For the twelve-month period ending December 31, 2023, the company reported a net profit attributable to shareholders of BD4.342m, demonstrating a 16pc increase from BD 3.734m in 2022. This growth is attributed to enhanced technical surplus and the performance of the shareholders’ fund. Earnings per share for the full year rose to 32.58 fils, up from 28.22 fils in the previous year.
In terms of total net profit and surplus, Solidarity Bahrain recorded BD1.545m for the fourth quarter of 2023, compared to BD1.414m for the same period of last year, marking a 9pc increase. Similarly, for the twelve-month period ending December 31, 2023, the total net profit and surplus amounted to BD5.210m, reflecting a 14pc increase from BD4.561m in 2022.
The company’s shareholders’ equity as of December 31, 2023, stood at BD36.548m, indicating an 11pc increase from BD32.784m as of December 31, 2022. Additionally, total assets as of December 31, 2023, reached BD122.412m, showing a 23pc increase from BD99.507m in 2022.
For the policyholder’s fund, a net surplus of BD271,000 was reported for the fourth quarter of 2023, up 3pc from BD 262,000 in 2022. The net surplus for the full year ending December 31, 2023, amounted to BD868,000, reflecting a 5pc increase from BD827,000 in 2022.
In terms of gross premiums, BD14.155m was registered for the fourth quarter of 2023, slightly lower than the BD14.162m recorded in the same period last year. However, for the full year, gross contributions increased by 10pc to BD50.907m, up from BD46.166m in 2022.
The board of directors has proposed to distribute a cash dividend equivalent to 25pc of the paid-up capital, translating to 25 fils per share, totalling BD3,331,343 (net of treasury shares). This dividend recommendation is subject to approval from regulatory authorities and the company’s shareholders at the upcoming annual general meeting.
Commenting on Solidarity’s performance for the year 2023, chairman Shaikh Khalid bin Mustahail Al Mashani said: “Solidarity Bahrain concludes 2023 on a high note, marked by robust growth and the strategic acquisition of Al Hilal Life and its subsidiary, Al Hilal Takaful in December 2023. This move positions Solidarity Bahrain at the forefront of the insurance sector and is expected to have a positive impact on our financial performance. We enter the new year energised by the successes of 2023 and ready to capitalise on the exciting opportunities that lie ahead.”
Chief executive Jawad Mohammed commented: “Our exceptional team’s dedication fuelled a successful year with positive results.”
He added: “We completed our 2021-2023 strategy cycle and are proud of its achievements. Now, we focus on continued organic and inorganic growth, digitalisation for efficient operations, and exceptional customer service.”
He also added: “Solidarity Bahrain’s commitment to service excellence was celebrated with the ‘Best New Claims Centre Bahrain 2023’ award at the Global Banking and Finance Awards. Adding to its accolades, Solidarity Bahrain was named ‘Best Takaful Company’ and ‘Most Innovative Takaful Company’ by the Global Economics Magazine in 2023.”
Looking ahead, Solidarity is embarking on its new GROW strategy cycle for 2024-26. This acronym encapsulates the company’s commitment to; Growth in market share and profits; Retain customers and staff; Optimisation of operations, costs, and processes; and Work and collaborate with partners and stakeholders.
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