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Solidarity Bahrain B.S.C. announces net profits of BD 3.08 million for the year 2020, Representing 6% increase.

February 24, 2021
finance & economy

Solidarity Bahrain B.S.C. 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 710 thousand for the three- month period ended 31st December 2020, compared to BD 720 thousand for the same period in 2019, representing a decrease of 1%. The earning per share for the three- month period ended 31st December 2020 is 5.92 fils compared to 6.00 fils for the same period in 2019. The total comprehensive income attributed to shareholders’ fund for the three- month period ended 31st December 2020 is BD 885 thousand compared to BD 688 thousand for the same period in 2019, representing 29% increase.

The net profit attributed to shareholders’ fund for the twelve- month period ended 31st December 2020 is BD 2.685 million against a net profit of BD 2.616 million for the corresponding previous period, representing 3% increase which is the result of improved performance of the shareholders’ fund. The earning per share for the twelve- month period ended 31st December 2020 has increased to 22.38 fils compared to 21.81 fils for the same period in 2019. The total comprehensive income attributed to shareholders’ fund for the twelve- month period ended 31st December 2020 is BD 2.860 million compared to BD 2.859 million for the same period in 2019, representing no change.

The total net profit and surplus for the three- month period 31st December 2020 is BD 947 thousand compared to BD 899 thousand for the same period in 2019, representing an increase of 5%. The total net profit and surplus for the year ended 31st December 2020 is BD 3.079 million compared to BD 2.903 million for the same period in 2019, representing 6% increase which is the result of improved underwriting performance.

The shareholders’ equity as of 31st December 2020 is BD 28.328 million as compared to BD 27.267 million for the corresponding previous period, representing 4% increase, and total asset as of 31st December 2020 is BD 68.139 million as compared to BD 69.488 million as of 31st December 2019, representing 2% decrease.

With regards to policyholder’ s fund, Solidarity has reported a net surplus of BD 237 thousand for the three- month period ended 31st December 2020, as compared to BD 179 thousand surplus for the same period in 2019 with an increase of 32%. Solidarity has reported a net surplus of BD 394 thousand for the twelvemonths period ended 31st December 2020, as compared to the BD 287 thousand surplus for the corresponding previous period, representing an increase of 37%. The increase in the overall net profits is mainly due to the improvement in technical results and investment income in 2020 as compared to the corresponding previous period.

Solidarity has registered gross premium of BD 7.917 million for the three- month period ended 31st December 2020 compared to BD 8.743 million for the corresponding previous period, representing a decrease of 9%. The gross contribution for the twelve- month period ended 31st December 2020 is BD 30.204 million compared to BD 30.852 million for the corresponding previous period, representing a decrease of 2%.

Commenting on the results, Mr. Tawfeeq Shehab, Chairman of the company said: Despite the unprecedented economic challenges during the year, Solidarity Bahrain posted a positive financial performance in 2020, and managed to achieve stable growth over the previous year”. He added: “ It is worth mentioning that the ongoing potential merger between Solidarity Bahrain and T’azur will create a consolidated entity with a significantly large portfolio, wide array of products and will leverage on the synergy between the two operations to enhance value for all stakeholders”. He also added: “ The Board of Directors is highly appreciative of the comprehensive measures being taken by the Government of Bahrain to combat COVID- 19. These include its fiscal support and stimulus initiatives, which have limited the effects of the coronavirus on the economy, business sector and society; and its highly-effective public awareness campaign”. Then he added as well: “ The Board of directors also decided to propose a distribution for the year 2020 to the Shareholders who are registered on the Record Date, as follows: Cash dividend: 17.5% equivalent to 17.5 fils per share amounting to BD 2,099,000 ( exclud ing the treasury shares)”. This is subject to the approval of the company’ s shareholders on the upcoming Annual General Meeting.

In a statement Mr. Jawad Mohamed, Chief Executive Officer, Solidarity Bahrain commented: “ We are pleased to report that the Company’ s 2018- 2020 strategy concluded on a positive note at the end of the year. During this period, TeamSolidarity has successfully met the strategic objective of differentiating the company in a price- driven and highly competitive insurance sector, by focusing on quality, digital innovation, superior customer care, and a unique employee experience. Solidarity has proven its resilience against COVID- 19 pandemic by implementing a comprehensive action plan to combat its repercussions. The plan focused on protecting the health and safety of our employees, while providing and facilitating online channels for our clients to transact remotely with us”. He added: We are immensely proud that AM Best has affirmed the company’ s Financial Strength Rating ( FSR) of “ B++” ( Good) and Long- Term Issuer Credit Rating ( LongTerm ICR) of “ bbb+” with both these ratings having a ‘ Stable’ outlook. These affirmations reflect the company’ s balance sheet strength, which is underpinned by its risk-adjusted capitalization at the strongest level”. He also added: “ We have a very optimistic outlook for Solidarity Bahrain in 2021. This came as a result of TeamSolidarity’ s sterling efforts during 2020, and their agility to meet all future challenges”.

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