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An illness can be emotionally and financially draining. Accessing the right medical expertise and having the ability to pay for the treatment are major concerns. The reason why at Gulf Takaful insurance company have

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Chairman Message

"In the Name of Allah, The Most Compassionate, The Most Merciful. Peace, mercy and blessings of Allah may be upon you."

Dear Shareholders,

On behalf of the board of directors of gulf takaful insurance company, I would like to welcome you all to our third ordinary general assembly to present to you a brief report about activities and major accomplishments achieved during the year ending 31-12-2007.

The general state of our national economy during the year 2007 has been superb, thanks to the record high prices for Kuwaiti oil that helped increase government spending. Further more the year 2007 has witnessed major changes in kuwait''s monetary policy that helped boost our national economy such as ending the peg for the Kuwaiti Dinar to the us dollar. The repegging of the Kuwaiti Dinar against a basket of currencies helped the Dinar in appreciating against the US dollar and other major currencies and is expected to help the central bank in tackling inflation. Also the Kuwait stock exchange was able to hit new records during the year, supported by the excellent results announced by most companies, regardless of the industry or sector they operate in.

As for the insurance sector and as you are all aware it has always been one of the major sectors making up our national economy, and during the past year, the insurance sector in general and the takaful insurance sector in particular have witnessed major developments that helped increase their contribution to the overall gross domestic product, however and on the other hand, a great deal of new challenges were faced by local insurers during the year.

One of the major challenges witnessed by many local insurance operators was the unprecedented competition that caused the market to soften up, of course that was the natural result of the entry of many new insurance operators to the Kuwaiti market, most of whom where considered to be takaful insurers.

Despite the above. Gulf Takaful Insurance Company was able to continue to move ahead with it''s strategic plans. The company has succeeded in arranging for top class securities to back up all of its proportional and non-proportional reinsurance treaties without an exception through AA+ rated securities (S&P), which really reflects the good reputation the company has in the international markets. Also we have expanded our operations from a geographical point of view, as the year 2007 witnessed the grand opening of two new branches in the state of Kuwait. And last but not least, the company was able to achieve descent growth in revenues, profits and assets.

Follows is a brief for the 2007 results:

Despite our strict underwriting policy and the tough unprecedented competition witnessed in the local insurance market, caused by the entry of many new insurance Underwriting Operations companies to the market. Gulf takaful was able to achieve a 7% growth in revenues during the year 2007, where total written premiums reached KD 5,397,246 in comparison with KD 5,059,982 during the year 2006.

Profits

Net profits for the company reached KD 1,535,396 during the year 2007 representing growth of 679% in comprison to the year 2006 where net profits accounted for KD 197,194.

Company''s assets

Company assets reached KD 19,689,080 during the year 2007 representing growth of 15% in comparison to the year 2006, where total assets were valued at KD 17,144,995.

Shareholders equity

Total shareholder equity for the year 2007 reached KD 18,515,273 representing growth of 9.7% in comparison to year 2006 where it was valued at KD 16,877,330.

Therefore the board of directors recommended the following:

  • Transfer the amount of KD 155,031, 10% of the net profits achieved during the year as statutory reserves.
  • Transfer the amount of KD 155,031, 10% of the net profits achieved during the year as voluntary reserves.
  • Transfer the remainder of the net profits achieved amounting KD 1,225,334 to the retained earnings of the previous years to total the amount of KD 2,399,571 as of 31-12-2007.
  • We extend our sincere thanks and appreciations to his highness the Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah for the continued support provided to the private sector in Kuwait, and to his highness the crown prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and to his highness the prime minister Sheikh Nasser Al-Mohammed Al-Ahmed Al-Sabah for their continued support.
  • We also express our sincere thanks to the ministry of commerce, our sharia board and others for their continued support and cooperation with the company.
  • Last but not least, we also take this opportunity to thank the staff and the management of gulf takaful insurance company, our shareholders and clients, for their continued efforts and sincerity.

Yours Truly,

Bader Sulaiman Al-Othman
Chairman, Gulf Takaful Insurance Company