The board of directors of Takaful International Company has approved the financial results for the year ended December 31, 2024.
The net profit attributable to the shareholders for the three months ended December 31, 2024 was BD429,000 compared with BD264,000 for the same period in the previous year, an increase of 62 per cent, and corresponding earnings per share of 5.05 fils compared with 3.11 fils.
Total comprehensive income for the three months ended December 31, 2024 declined to BD201,000 compared with BD548,000 for the same period in the previous year, a decrease of 63pc.
The company reported a total net profit of BD487,000 for the fourth quarter (Q4) of 2024 compared with BD363,000 for the same period in the previous year, with an increase of 34pc. The rise is mainly attributed to higher performance of the shareholders’ fund which reported a profit of BD429,000 compared with BD264,00 for the same period in the previous year, an increase of 62pc. The increase is ascribed to the improved income generated from the investment portfolio during the quarter.
The participants’ Takaful funds achieved a surplus of BD58,000 in Q4-2024 compared with a surplus of BD99,000 for the same period in the previous year, a decrease of 41pc. This decline is due to the increase in the claims reserve during the period compared to the corresponding period of the previous year.
Recognised takaful contributions were BD6.774 million in Q4-2024 compared with BD6.159m for the same period in the previous year, an increase of 10pc. The recognised takaful cost decreased by 21.6pc to BD5.088m in Q4-2024 as compared with BD6.489m for the same period in the previous year.
As for the results of the full year ended December 31, 2024, the net profit attributable to the shareholders was BD1.334m compared with BD937,000 last year, an increase of 42pc, and corresponding earnings per share at 15.7 fils compared with 11.03 fils for the same period in the previous year. Total comprehensive income for the year ended December 31, 2024 increased to BD1.231m compared with BD969,000 in the previous year, an increase of 27pc.
Net profit for the year ended December 31, 2024 was BD1.65m compared with BD1.513m for the same period in the previous year, with an increase of 9pc, which is mainly attributed to the improved performance of the shareholders’ fund that achieved a profit of BD1.334m compared with BD937,000 for the same period in the previous year, an increase of 42pc. The increase is mainly attributed to the improved income generated from the investment portfolio.
The participants’ takaful funds achieved a surplus of BD315,000 compared with a surplus of BD575,000 for the same period in the previous year, a decrease of 45pc. This decline is due to the increase in the claims reserve for the year compared with the previous year. The increase is attributed to the heavy rain claims in April 2024 as well as the inflation in medical claims, which the company has taken corrective underwriting measures to address.
The company registered recognised takaful contributions of BD25.981m for the year ended December 31, 2024 compared with BD24.363m last year, with an increase of 7pc. Recognised takaful cost increased by 10pc to BD22.624m for the year ended December 31, 2024 as compared with BD20.551m last year.
The company’s total equity attributable to the shareholders grew by 5pc to BD12.68m as of December 31, 2024 compared with BD12.086m as of December 31, 2023.
Total assets of the company increased by 5pc to BD43.833m as of December 31, 2024 compared with BD41.589m as of December 31, 2023.
Board chairman Ebrahim Al Rayes said that the company’s financial results for the year 2024 came in line with the financial projections approved by the board. He highlighted that the company achieved significant growth in income from its investment operations, which saw a notable improvement in the performance of shareholders’ funds.
“The adoption of new investment strategies has resulted in positive outcomes for the performance of the shareholder fund. This shift has led to improvements in both listed financial stocks and Islamic Sukuk portfolios, achieving full benefit from cash management,” he said.
“In parallel with the financial achievements, an ESG committee was successfully established last year, marking a significant step in our commitment to sustainability and responsible governance. This year, we are proud to announce that our very first comprehensive ESG report will be published for the year 2024, which will highlight the progress and outcomes of the company’s sustainability efforts. Over the past year, Takaful International has been working tirelessly to implement and advance various environmental, social and governance initiatives, with a clear focus on creating a lasting positive impact alongside our financial growth,” Mr Al Rayes added.
The chairman indicated that the board has decided to submit a recommendation to the general assembly to distribute cash dividends at the rate of 12.5pc of the paid-up capital, which is equivalent to 12.5 fils per share, totalling BD1,062,500, subject to the approval of the Central Bank of Bahrain and the shareholders in the upcoming annual general meeting.
Chief executive Essam Al Ansari noted that the results demonstrate the company’s resilience and ability to maintain financial stability, even in the face of challenging market conditions in the insurance sector.
He indicated that the company successfully retained its A- credit rating with a stable outlook from the international rating agency AM Best, positioning Takaful International as a leader among locally rated takaful companies.
Mr Al Ansari emphasised that the company has forged several key partnerships to further strengthen Takaful International’s market position. He also highlighted the launch of the company’s new website, which marks a significant milestone in its ongoing digital transformation journey, enhancing customer experience and streamlining services.
“Takaful International remains committed to driving growth, innovation and sustainability, while continuously enhancing value for all its stakeholders,” he added.
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