Solidarity Bahrain B.S.C. announces profits of BD 2.9 million for the year 2019, Representing 13% increase

Solidarity Bahrain B.S.C. announces profits of BD 2.9 million for the year 2019, Representing 13% increase

MANAMA, BAHRAIN – 26th February, 2020 – 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 720 thousand for the three-month period ended 31st December 2019, compared to BD 762 thousand for the same period in 2018, with a decrease of 6% due to higher provisions booked in the last quarter of 2019. The earning per share for the three-month period ended 31st December 2019 is 6.00 fils compared to 6.35 fils for the same period in 2018. The total comprehensive income attributed to shareholders’ fund for the three-month period ended 31st December 2019 is BD 688 thousand compared to BD 671 Thousand for the same period in 2018, representing 3% increase.

The net profit attributed to shareholders’ fund for the twelve-month period ended 31st December 2019 is BD 2.616 million against a net profit of BD 2.306 million for the corresponding previous period, representing 13% increase which is the result of improved investment income and performance of the shareholders fund. The earning per share for the twelve-month period ended 31st December 2019 has increased to 21.81 fils compared to 19.22 fils for the same period in 2018. The total comprehensive income attributed to shareholders’ fund for the twelve-month period ended 31st December 2019 is BD 2.859 million compared to BD 2.399 million for the same period in 2018, representing 19% increase.

The total net profit and surplus for the year ended 31st December 2019 is BD 2.9 million compared to BD 2.6 million for the same period in 2018, representing 13% increase which is the result of improved investment income and underwriting performance.

The shareholders’ equity as at 31st December 2019 is BD 27.267 million as compared to BD 25.907 million for the corresponding previous period, representing 5% increase, and total asset as at 31st December 2019 is BD 69.488 million as compared to BD 68.614 million as at 31st December 2018, representing 1% increase.

With regards to policyholder’s fund, Solidarity has reported a net surplus of BD 179 thousand for the three-month period ended 31st December 2019, as compared to BD 124 thousand surplus for the same period in 2018 with an increase of 44%. Solidarity has reported a net surplus of BD 287 thousand for twelve-month period ended 31st December 2019, as compared to the BD 270 thousand surplus for the same period in 2018, representing an increase of 6%. The increase in the overall net profits is mainly due to the improvement in technical results and investment income in 2019 as compared to the corresponding previous period.

Solidarity has registered gross premium of BD 8.743 million for the three-month period ended 31st December 2019 compared to BD 8.188 million for the corresponding previous period, representing an increase of 7%. The gross contribution for the twelve-month period ended 31st December 2019 is BD 30.852 million compared to BD 30.072 million for the corresponding previous period, representing an increase of 3%.

In a statement Mr. Tawfeeq Shehab, Chairman of the company stated: “Solidarity Bahrain withstood another year of solid performance. The investments made by the company over the past few years in our people have enhanced productivity and efficiency, which led to a positive return on the overall positioning of Solidarity Bahrain in the kingdom”. For the year ended 31st December 2019, Board of Directors has recommended a cash dividend of 15% to the shareholders subject to the approval of the Company’s shareholders in their upcoming Annual General Meeting.
For his part Jawad Mohamed, Chief Executive Officer, Solidarity Bahrain commented: “We are delighted to have kept our promises to deliver growth in our revenues and profits”. He added: “We are also focused on pushing forward through enhancing our offerings, while being committed to delivering our service through innovative digital channels with an unmatched customer experience”. He also added: “In line with our commitment to pioneer the digital transformation and Insurtech domain, 2019 witnessed great achievements such as; revamping Seef Mall Branch with digital and innovative self-service solutions, introducing the first Video Insurance Service in GCC to simplify the means of transaction with Solidarity, and the implementation of a new Core Insurance system. Furthermore AM Best has upgraded the company’s Long –Term Issuer Credit Rating (Long –Term ICR) to “bbb+” from “bbb” with a stable outlook. It is also worth mentioning that the company has successfully achieved the (ISO) 27001 certification from the British Standards Institution (BSI)”.
For more information and details, Solidarity Bahrain B.S.C.’s financial reports and press release are available and accessible on Bahrain Bourses’ website.