Solidarity Bahrain B.S.C. announces net profits of BD 3.31 million for the year 2021, representing 7% increase and the Board of Directors proposed to distribute cash dividend of 20% of the paid-up capital

Solidarity Bahrain B.S.C. announces net profits of BD 3.31 million for the year 2021, representing 7% increase and the Board of Directors proposed to distribute cash dividend of 20% of the paid-up capital

MANAMA, BAHRAIN – 23rd February 2022 – 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 827 thousand for the three-month period ended 31st December 2021, compared to BD 710 thousand for the same period in 2020, representing an increase of 16%. The earning per share for the three-month period ended 31st December 2021 is 6.89 fils compared to 5.92 fils for the same period in 2020. The total comprehensive income attributed to shareholders’ fund for the three-month period ended 31st December 2021 is BD 878 thousand compared to BD 885 thousand for the same period in 2020, representing 1% decrease.

The net profit attributed to shareholders’ fund for the twelve-month period ended 31st December 2021 is BD 2.885 million against a net profit of BD 2.685 million for the corresponding previous period, representing 7% increase which is the result of improved performance of the shareholders’ fund. The earning per share for the twelve-month period ended 31st December 2021 has increased to 24.05 fils compared to 22.38 fils for the same period in 2020. The total comprehensive income attributed to shareholders’ fund for the twelve-month period ended 31st December 2021 is BD 3.723 million compared to BD 2.860 million for the same period in 2020, representing 30% increase.

The total net profit and surplus for the three-month period 31st December 2021 is BD 1.019 million compared to BD 947 thousand for the same period in 2020, representing an increase of 8%. The total net profit and surplus for the year ended 31st December 2021 is BD 3.308 million compared to BD 3.079 million for the same period in 2020, representing 7% increase which is the result of improved underwriting performance.

The shareholders’ equity as of 31st December 2021 is BD 29.953 million as compared to BD 28.328 million for the corresponding previous period, representing 6% increase, and total asset as of 31st December 2021 is BD 72.640 million as compared to BD 68.139 million as of 31st December 2020, representing 7% increase.

With regards to policyholder’s fund, Solidarity has reported a net surplus of BD 192 thousand for the three-month period ended 31st December 2021, as compared to BD 237 thousand surplus for the same period in 2020 with a decrease of 19%. Solidarity has reported a net surplus of BD 423 thousand for the twelve-months period ended 31st December 2021, as compared to the BD 394 thousand surplus for the corresponding previous period, representing an increase of 7%.  The increase in the overall net profits is mainly due to the improvement in technical results and investment income in 2021 as compared to the corresponding previous period.

Solidarity has registered gross premium of BD 8.825 million for the three-month period ended 31st December 2021 compared to BD 7.917 million for the corresponding previous period, representing an increase of 11%. The gross contribution for the twelve-month period ended 31st December 2021 is BD 31.629 million compared to BD 30.204 million for the corresponding previous period, representing an increase of 5%.

The Board of Directors proposed to distribute  cash dividend of 20% of the paid-up capital, equivalent to 20 Fils per share amounting to BD 2,398,408 (Net of treasury shares). The dividend recommendation is subject to the approval of the related regulatory authorities and the Company’s shareholders in the upcoming Annual General Meeting.

Commenting on Solidarity’s performance for 2021, Mr. Tawfeeq Shehab, Chairman to the board of directors said: “The Board is pleased to report the positive financial results for 2021,and these positive results are the outcome of Company’s investment in its infrastructure and human capital as well as the constant efforts put forth by our diligent workforce.” He also added: “The board has a positive futuristic outlook after the successful completion of t’azur merger with Solidarity Bahrain at the beginning of the year 2022. The merger created a consolidated entity with a significantly large portfolio which will leverage on the synergy between the two operations to elevate value for all the stakeholders.”

Mr. Jawad Mohammed, Chief Executive Officer, Solidarity Bahrain commented: “We take immense pride in announcing our financial results for 2021, and the performance came as a result of the Company’s commitment towards maintaining its position as an industry insurance leader”. He also added: “The successful completion of the merger of Tazur with Solidarity will reflect positively on Solidarity’s portfolio, as the strategic aspirations of the Company’s Mergers and Acquisitions operations driven by a healthy organic growth, and optimization of future opportunities”. He added: “We have an optimistic outlook for Solidarity, and we look forward to another successful year ahead. We are pledged to provide an unparalleled customer experience, with unmatched innovative solutions”. It is worth mentioning that Solidarity has been recently awarded as the “Best General Insurance Company for Innovation” and “Best Online Insurance Company in Bahrain” which testifies Solidarity’s commitment towards innovation and digital transformation.

The full set financial statements and the press release are available on Bahrain Bourse’s website.