Home > Financial Statements  

CEO Message

Takaful International Company B.S.C.

Chief Executive’s report for the year ended 31 December 2017



Macroeconomic parameters for Bahrain economy have been improving consistently over the last few quarters. The business sentiment continues to be positive, largely owing to political stability and some reforms starting to come through. However, weak investment demand, partly emanating from a leveraged corporate sector alongside a stressed banking sector, remains a challenge. At a time when the global economy seems poised for a turnaround after years of sluggish growth, we hope the investment cycle turns sooner and builds on the improving macro parameters.


Bahrain and other GCC countries continued to see some improvements in macroeconomic conditions during the year.  Several structural reforms were initiated by the Government that are expected to provide an impetus to long-term sustainable growth in the economy.


Many business sectors have been under economic stress in the last couple of years on account of several global, regional and economical situations.  There were challenges in terms of slowdown in nominal growth due to the impact of muted global commodity prices on some important sector and subdued private investments.


The year 2017 was another year of challenges and opportunities for Takaful International. Takaful International wrote overall Contributions of BHD19.7 M compared to previous year of BD 22.2M. The company was cautious in its underwriting policy and restructured further its business portfolio in line with its strategy to maintain a balanced portfolio, adopting prudent underwriting policies to protect the interest of its stakeholders. The overall net claims ratio, was 73% for the year 2017 compared to 68% for year ended 2016.


Takaful International was successful in maintaining business despite challenging business environment. The company adopted prudent and best practice policies in impairment of investments and reserving for Takaful  liabilities which resulted in additional one off reserve and impairment expenses and had an overall loss of BD 773K for the year compared to BD 631K overall profit for the previous year.


Bahrain’s insurance sector has evolved over the last decade. A competitive market and regulatory initiatives focused on high quality products that meet the needs of the customers have laid the foundation for future growth. These factors enhance Takaful’s prospects to tap the available potentials in the market. We have built a business model based on a competitive product proposition, quality customer service and a good distribution network. With the use of technology and a committed team of employees, we strive to be the preferred choice of customers for their protection and savings needs. We accord the highest importance to honouring the trust that our customers have reposed in us, not only for themselves but also for their families. We are therefore committed to ensuring that we are responsive to customer needs.


Takaful International’s focus remains on supporting delivery of elements of value to customers. The company’s array of products continues to fulfil customer specific protection and financial goals, in a cost-effective manner. The Company has consistently focused on its differentiator – a customer-centric value proposition. At the same time, it has adopted a strategy to follow a segmented approach with an emphasis on more profitable product lines. Our customer-focussed approach encompasses products, distribution, customer service and claims settlement activities designed to provide a superior experience to our customers.



Our strategy has been that of offering convenience to customers. To render this strategy in action we developed an array of products relevant to customers’ needs to provide a delightful on-boarding experience and to deliver superior service to customers.


I take pride to announce that Takaful International Company was awarded the E-Government Excellence Award 2017 for its Smart Takaful application.


Our DEVICE-AGNOSTIC digital platform has been built to offer convenience, empower customers and improve distribution efficiencies. We consistently endeavour to make every aspect of our business simple and transparent. We believe, with the support of TECHNOLOGY, the Company can become more efficient and keep delivering superior levels of customer service.



Our strength is in growing and managing high quality, multi-distribution channel, together with our expertise in providing innovative solutions to our customers’ savings and protection needs and delivering service excellence.


All these helped your company to leverage opportunities and to maintain its leadership position in Bahrain’s Takaful business.  We are thankful to all our stakeholders for their support extended in making us their preferred Insurance provider.


I would like to highlight some of important results of the company which are reflected in the following graphs and are self-explanatory:


Takaful has endeavored to maintain the expectations of its shareholders, policyholders and other stakeholders. Nurturing long-term relationships and best services have always been the highest priority of Takaful. Since inception, Takaful has believed in building a culture of integrity and transparency and endeavored to revolve all its business activities based on its founding principles of fairness, kindness, efficiency and effectiveness based on the Islamic Insurance, cooperative sharing and caring principles.



Our Board of Directors believe in upholding the highest standards of governance and accountability. The board has taken cognizance of various regulatory changes in the overall governance framework and remains committed to imbibing the spirit of the law and regulations.


We expect a positive outlook for the year 2018 and expect a decent growth in business. Our main focus will be on quality services, prudent claims and expenses management expenses which will help the company to generate better results.



I would like to take this opportunity to thank our Board of directors for their support and guidance. I would also like to express my appreciation to the Sharia’a supervisory board members and the employees of Takaful International for their dedicated efforts towards achieving the goals of the company. Also thank our valued clients, reinsurance companies, intermediaries and all our business partners for their support which has contributed in the growth of the company.



Thank you,










Younis J. Al Sayed

Chief Executive

Bahrain, 20th February 2018