OREANDA-NEWS.  Takaful International Company announced its first quarter results for financial year 2016, showing a quarterly consolidated results with a total profit of BD136K, compared to losses of BD181K for the same period of the previous year 2015. The results come after a decrease in the deficit of the General Takaful Fund and the increase of Family Takaful Fund surplus as well as lower profits generated by the Shareholders’ Fund. General Takaful operations have achieved an improvement in performance compared to the previous year where the deficit in the Fund’s operations was BD55K, compared to a deficit of BD425K in the previous year, while the surpluses rose from the Family Takaful operations to reach BD62K, compared to a surplus of BD43K for the same period of the previous year, and the shareholders’ net profit amounted to BD129, compared with a profit of BD201 of the same period of the previous year.

In a press release published by the Company, explaining that the significant improvement in the results of each of the General and Family Funds were due to the actions taken by the Board of Directors in the previous year, which saw changes in underwriting and administrative policies leading to a decline in losses by more than 87% in the General Fund and an increase in Family Fund surpluses by 44% compared to the previous period.

With regard to portfolio shareholders the press release explained that the decline in the shareholders’ net profit was mainly due to the company’s exit from an investment during 2015, for which the company reported an exceptional income; the press release also explained that the company was able to reduce the administrative expenses by as much as 31%, which reflects positively on the operational performance of the company.

On the other hand, Mr. Younis Jamal Alsayed, CEO, explained that the company has taken a more conservative underwriting approached for both Health Care and Motor Takaful, with Motor Takaful portfolio decreasing by 11% from the previous year 2015. The CEO had also explained that the company had prioritized its efforts on increasing its underwriting of Family Takaful products, achieving a growth of 19 % as compared to the previous year 2015. Over all, the Takaful total gross written contributions for the period ended March 31, 2016 reached BD7,535,876 compared to BD7,094,601 in the same period of the previous year, representing a growth of 6%. Net loss ratio also witnessed a marked improvement, which fell to a 75% compared to a rate of 88% in the same period of the previous year.

Mr. Alsayed emphasized that the company will continue to pursue these policies, to ensure providing the best solutions to its clients and customer while maintain the stable financial stability and returns to its shareholders, while implementing innovative underwriting strategies and marketing plans that caters to its target audience and that are based on Islamic Sharia’a Principles.

The Takaful International Company is the first Islamic insurance company in the region, established in 1989 to provide a full range of takaful products and solutions compatible with the foundations of Islamic Sharia’a and the requirements of different institutions and individuals.