Takaful International achieves net profit of BD 1.619 million for the year 2025

TDT | Manama

Email: mail@newsofbahrain.com

The Board of Directors of Takaful International Company approved the financial results for the year ended 31st December 2025.

Financial Results for the three months ended 31st December 2025

The net profit attributable to the shareholders after tax for the three months ended 31st December 2025 was BD 468K compared to a net profit of BD 429K for the same period in the previous year, an increase of 9%, and a corresponding earnings per share of 5.53 Fils compared with 5.05 Fils for the same period in the previous year. Total comprehensive income for the three months ended 31st December 2025 increased to BD 470K compared to BD 201K for the same period in the previous year, a notable increase of 134%.

The Company reported a total net profit after tax of BD 528K for the fourth quarter of 2025 compared to BD 487K for the same period in the previous year with an increase of 8%, which is attributed to the performance of the shareholders’ fund that reported a profit of BD 468K compared to BD 429K for the same period in the previous year, with an increase of 9%. The increase is mainly due to the income generated from the investments’ portfolio during the quarter. The participants’ Takaful funds achieved a surplus of BD 59K in the fourth quarter 2025 compared to a surplus of BD 58K for the same period in the previous year, an increase of 2%.

Recognized takaful contributions were BD 7.994m in the fourth quarter 2025 compared to BD 6.774m for the same period in the previous year, an increase of 18%. The recognized takaful costs increased by 30% to BD 6.627m in the fourth quarter 2025 as compared to BD 5.088m for the same period in the previous year.

Financial Results for the yearend 31st December 2025

As for the results of the full year ended 31st December 2025, the net profit attributable to the shareholders after tax was BD 1.418m compared to BD 1.334m in the previous year, an increase of 6%, and corresponding earnings per share at 16.72 Fils compared with 15.70 Fils in the previous year. Total comprehensive income for the year ended 31st December 2025 increased to BD 1.502m compared to BD 1.231m in the previous year, an increase of 22%.

Net profit for the year ended 31st December 2025 after tax was BD 1.619m compared to BD 1.650m in the previous year, with a decrease of 2%.

This change is due to the firsttime implementation of the 15% Domestic Minimum Topup Tax in Bahrain, which came into effect in January 2025 for multinational companies and was not reflected in the previous year.

Excluding the impact of this new tax regulation, the company's profitability continued to grow, reflecting growth of its underlying business. The shareholders’ fund achieved a profit of BD 1.418m after tax for the year 2025 compared to a profit BD 1.334m in the previous year, with an increase of 6%. The increase is attributed to the improved income generated from the investments’ portfolio. The participants’ takaful funds achieved a surplus of BD 201K in 2025 compared to a surplus of BD 315K in the previous year with a decrease of 36%. This decline is due to the increase in the claims reserve for the year compared to the previous year.

The Company registered recognized takaful contributions of BD 29.723m for the year ended 31st December 2025 compared to BD 25.981m in the previous year, with an increase of 14%. Recognized takaful costs increased by 9% to BD 24.730m for the year ended 31st December 2025 as compared to BD 22.624m in the previous year. The Company’s total equity attributable to the shareholders grew by 3% to BD 13.100m as of 31st December 2025 compared to BD 12.680m as of 31st December 2024.

Total assets of the Company increased by 6% to BD 46.592m as of 31st December 2025 compared to BD 43.833m as of 31st December 2024.

The Board of Directors resolved a recommendation to the General Assembly to distribute cash dividends at the rate of 15% of the paid-up capital, which is equivalent to 15 Fils per share, totaling BD 1,275,000, subject to the approval of the Central Bank of Bahrain and the shareholders in the upcoming annual general meeting.

Statement of the Chairman of the Board of Directors

Mr. Ebrahim Al-Rayes, Chairman of the Board, stated that the company’s financial results for the year 2025 came in line with the financial projections approved by the Board. He highlighted that the company achieved growth in income from its investment operations. The adoption of the new investment strategies has resulted in positive results for the performance of the shareholders’ fund. This shift has led to improvements in both listed financial stocks and Islamic Sukuk portfolios, achieving full benefit from cash management.

Statement of Chief Executive Officer

Mr. Essam Mohammed Al Ansari, CEO, shared his insights on the company’s financial performance, noting that the results reflect Takaful International’s resilience and strong financial fundamentals, enabling it to maintain stability despite challenging market conditions in the insurance sector. He highlighted the company’s successful retention of its A- credit rating with a stable outlook from the international rating agency AM Best, reinforcing Takaful International’s position as a leading takaful operator among locally rated companies.