Insurance cover against sabotage and terrorism in Bahrain has jumped by 300 per cent since the beginning of unrest in the kingdom.
This is because the cost of re-insuring such cover has jumped substantially, according to Takaful International chief executive officer Younis Jamal Al Sayed.
Speaking after the company's 21st annual general meeting yesterday at L'Hotel, in Seef, he said that historically this type of insurance was very small for the company but it could grow, not least because of the increased cost.
He said there was no real likelihood of insurance premiums rising and expressed confidence that 2011 would be a year of growth for the company.
Al Sayed said that the drop in the company's rating from A- to BBB could see it lose some business from outside Bahrain but this only accounted for eight per cent of premiums.
'The downgrade in the rating reflected a downgrade in the country's sovereign rating and this should not affect premium rates at home.'
He said the company's investment business would not be affected as most of their portfolio was overseas.
'General insurance and car and housing will not be affected and hopefully the current uncertainty will not last long and we can get back to normal when people will feel secure and look to buying insurance,' he added.
He said the company was offering new services to individuals and institutions in collaboration with regional and international partners.
This had led to the recently launched e-bidding service for damaged cars and goods, the first of its kind in the region, which is easy, convenient and safe using the latest technology.
In addition, the company launched its 'Takaful Online' service which enables customers to inquire and obtain quotations for various services of motor, travel and home insurance as well as to domestic and marine insurance and other insurance services as provided by the company.
'Takaful International achieved significant growth in the proportion of total insurance contributions for the year, which amounted to an 8 per cent annual increase,' chairman Bara'a A Al Qenaei told shareholders at the meeting.
Insurance contributions amounted to BD16.2 million ($43 million) compared to BD15 million for the previous year.
Total revenues amounted to BD8.7 million, up from BD8.1 million and the profit of insurance operations listed 12 per cent growth were up to BD3.26 million, compared to BD2.91 million.
'The company's results confirm our ability to deal with all the variables of the Bahrain insurance market and adapt to diverse indicators of financial markets, as exhibited by our achievements of 2010 which are in line with our strategy and vision of the future,' Al Qenaei added.