The Board of Directors of Takaful International Company B.S.C. (trading symbol: TAKAFUL) approved the company’s financial results for the year ending on December 31, 2023, which were prepared in accordance with the new Islamic accounting standards FAS 42.43 – FAS 30, which are parallel to the international accounting standards IFRS 17 – IFRS. 9.
The three months of 2023
Net profit attributable to shareholders amounted to 264 thousand Bahraini dinars for the three-month period ending on December 31, 2023, compared to a net profit of 213 thousand Bahraini dinars for the same period of the previous year, an increase of 24%. Earnings per share amounted to 3.11 fils for the three-month period ending on December 31, 2023, compared to 2.51 fils per share for the same period of the previous year. The comprehensive income attributable to shareholders amounted to 548 thousand dinars during the three-month period ending on December 31, 2023, compared to a comprehensive income of 288 thousand dinars for the same period of the previous year, an increase of 90%.
The company’s total profits reached 363 thousand dinars during the fourth quarter of 2023 compared to 255 thousand dinars for the same period of the previous year, an increase of 42% due to the improved performance of the Participants Fund, which achieved a surplus of 99 thousand dinars during the fourth quarter of 2023 compared to a surplus of 42 thousand dinars for the same period. From the previous year, an increase of 136%. The Shareholders Fund also achieved a profit of 264 thousand dinars in the fourth quarter of 2023, compared to a profit of 213 thousand dinars for the same period of the previous year, an increase of 24%.
Proven Takaful subscriptions amounted to 6.1 million dinars during the fourth quarter of 2023, compared to 6.2 million dinars for the same period of the previous year, a slight decrease of 1%. Takaful costs incurred amounted to 6.5 million dinars during the fourth quarter of 2023, compared to 4.1 million dinars during the same period of the previous year, an increase of 60%.
Fiscal year 2023
As for the results for the full year, the net profit attributable to shareholders amounted to 937 thousand Bahraini dinars for the financial year ending on December 31, 2023, compared to a net profit of 858 thousand Bahraini dinars in the previous year, an increase of 9%. Earnings per share amounted to 11.03 fils, compared to 10.09 fils per share in the previous year. The comprehensive income attributable to shareholders for the year amounted to 969 thousand dinars, compared to a comprehensive income of 762 thousand dinars in the previous year, an increase of 27%.
The company’s total profits amounted to 1,513 million Bahraini dinars for the fiscal year ending on December 31, 2023, compared to a total profit of 1,253 million Bahraini dinars in the previous year, an increase of 21%, resulting from the improved performance of the Shareholders Fund, which achieved a profit of 937 thousand dinars in the fiscal year ending on December 31. December 2023, compared to a profit of 858 thousand dinars during the previous year, an increase of 9%. The performance of the Participants Fund improved, which achieved a surplus of 575 thousand dinars in the fiscal year ending on December 31, 2023, compared to a surplus of 395 thousand dinars during the previous year, an increase of 46%.
Proven Takaful contributions amounted to 24,363 million dinars during the fiscal year ending on December 31, 2023, compared to 23,994 million dinars in the previous year, an increase of 1.5%. Takaful costs incurred amounted to 20,551 million dinars during the fiscal year ending on December 31, 2023, compared to 17,904 million dinars during the previous year, an increase of 15%.
Total equity attributable to shareholders amounted to 12,086 million dinars for the financial year ending on December 31, 2023, compared to 11,547 million dinars in the previous year, an increase of 5%.
The company’s total assets amounted to 41,589 million dinars for the fiscal year ending on December 31, 2023, compared to 38,503 million dinars in the previous year, an increase of 8%.
On the sidelines of the financial statements, Ibrahim Al-Rayes, Chairman of the Board of Directors, stated that the company’s financial results for the year 2023 came in accordance with the financial projections approved by the Board of Directors, and that the company was able to achieve good growth in income from insurance operations, especially investment operations, which witnessed a noticeable improvement in the performance of shareholders’ lists. And the participants, as the company achieved a net income from investment of 1,217 million dinars, compared to 661 thousand dinars in the previous year, that is, an increase of 84%, and the share of the company’s shareholders amounted to 595 thousand dinars, and the share of the two participant funds was 210 thousand dinars, which led to an improvement in the shareholders’ profit as well as The surplus of the two participant funds, as the accumulated surplus of the two participant funds during the year amounted to 801 thousand Bahraini dinars, compared to 182 thousand Bahraini dinars in the previous year.
On the other hand, and in light of the Board of Directors’ interest in integrating environmental, social and governance factors into the insurance sector, last December the company organized a conference on insurance sustainability and spreading awareness to integrate the principles of sustainability into the insurance sector.
Cash distributions
The Chairman of the Board of Directors indicated that the Board decided to submit a recommendation to the General Assembly to distribute cash dividends of 7.5% of the paid-up capital, equivalent to 7.5 fils per share, with a total of 637,500 Bahraini dinars, subject to the approval of shareholders at the next General Assembly meeting.
For his part, Issam 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 the insurance market is witnessing. Indicating that the company was able to maintain its credit rating of A- with a stable future outlook from the international rating agency AM Best, which places the company at the top of the list of locally classified takaful companies. Adding that the company is the first joint stock company to announce the application of the new accounting standards issued by the Islamic Accounting and Auditing Organization, which coincided with the launch of the most advanced electronic system, which is considered one of the best systems specialized in insurance and reinsurance operations and enjoys the trust of customers and all stakeholders, and that issuing insurance documents electronically has become It is easy and available to everyone.
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