Solidarity Bahrain posts BD 2.6 Million profit for the year ended 31st December 2018

Solidarity Bahrain posts BD 2.6 Million profit for the year ended 31st December 2018

MANAMA, BAHRAIN – 25 February, 2019 – Solidarity Bahrain B.S.C. (Trading Code: SOLID), one of the largest insurance companies in Bahrain and a subsidiary of Solidarity Group Holding, has announced a net profit attributed to shareholders’ fund of BD 2.3 million for the Year ended 31st December 2018 against a net profit of BD 96 thousand for the corresponding previous period, representing 2302% increase. In regard to policyholder’s fund, Solidarity has reported a net surplus of BD 270 thousand, as compared to the BD 65 thousand surplus for the same period in 2017, representing an increase of 315%. The increase in the net profits is mainly due to the significant improvement in technical and investment income in 2018 as compared to the corresponding previous period. However, it is worth mentioning that the increase in net profit for the financial year ended 31 December 2018 in correspondence to the same period of last year (one-month period), is due to the merger between Solidarity General Takaful B.S.C. (c) and Al Ahlia Insurance Company B.S.C.

For the 4th Quarter ended 31.12.2018, the results included a net profit attributed to shareholders’ fund of BD 762 thousand against a net profit of BD 333 thousand for the corresponding previous period, representing 129% increase. In regard to policyholder’s fund, Solidarity has reported a net surplus of BD 124 thousand for the three-month period ended 31 December 2018.

Solidarity has registered gross premium of BD 30.07 million for the full Year ended 31st December 2018 compared to BD 15.87 million for the corresponding previous period, representing an increase of 89%. For the three-month period ended 31 December 2018 has registered gross premium BD 8.19 million compared to 5.47 million for the same period last year representing an increase of 50%.

Solidarity has also reported BD 445 thousand surplus from conventional operations for the Year ended 31st December 2018 compared to BD 408 thousand surplus in 2017, representing an increase of 9%. For the three-month period ended 31 December 2018, Solidarity has reported BD 370 thousand surplus from conventional operations compared to BD 204 thousand surplus for 2017, representing an increase of 81%.

The earning per share has also increased to 19.22 fils for the Year ended 31st December 2018 compared to 1.45 fils for 2017. for the three-month period ended 31 December 2018 the earning per share is 6.33 fils compared to 5.04 fils for the same period in 2017.

The shareholders’ equity as at 31st December 2018 is BD 25.91 million as compared to BD 23.51 million as at 31st December 2017, representing 10% increase, and total asset as at 31st December 2018 is BD 68.62 million as compared to BD 65.70 million as at 31st December 2017, representing 4% increase.

In a statement Mr. Tawfeeq Shehab, Chairman of the company said: “2018 proved to be a positive turning point for Solidarity Bahrain, as the merger between Solidarity General Takaful B.S.C (c) and Al Ahlia Insurance Company B.S.C is a landmark achievement which positioned the Company amongst the top tiers of Bahrain’s insurance industry.” For the year ended 31 December 2018, Board of Directors has recommended a cash dividend of 12.5% to the shareholders, equivalent to 12.5 Fils per share.

For his part Jawad Mohamed, Chief Executive Officer, Solidarity Bahrain said: “We have successfully overcome the challenges associated with the consolidation of the two companies, through which efficiencies were achieved, synergies were established and customer engagement remained our key focus.” He added: “We are proud of our positive performance and pleased with our results, and we will continue to deliver our promises to our stakeholders.”