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Insurer Back In Profit After Tough 2008

Takaful Re completes financial turnaround to post $10.6 million profit for 2009.

After posting huge losses for 2008, Takaful Re has completed a swift turnaround in 12 months to regain a firm financial footing.

The Dubai-based insurer reported a US$10 million profit for 2009 compared with the previous year’s $10.6 million deficit. Gross contributions increased 43% to $48.7 million from $34 million during the same period.

Total investment earnings for 2009 were $7.2 million against a $11.6 million loss in 2008, while invested assets climbed to $129.8 million from $120.6 million.

Takaful’s board said the company managed to generate healthy profits amid tough market conditions that saw big declines in UAE construction projects and insurance rates.

“The continuous support of our Takaful and cooperative partners, Shari’a supervisory board members and the shareholders were the main driving force in achieving the positive result,” added Khalid Al Bustani, Takaful Re’s chairman.

“Takaful Re will continue pursuing its own strategy based on professionalism and strict compliance with regulatory requirements.”

At the company’s annual general meeting on March 21, Takaful’s board said stakeholders would receive a 3.8% cash dividend from the $4.75 million paid up capital based on each share worth 38 cents.

Shareholder’s equity at the turn of the year was $129.8 million, with book value per share worth $1.04.