Kuwait: First Takaful invests in Islamic insurer in Pakistan
Source: Middle East Insurance Review | May 2021
First Takaful Insurance has announced that it will invest in a new Islamic insurance company in Pakistan.
In a statement to Boursa Kuwait, First Takaful said that the new Islamic insurer will be devoted to launching a savings insurance plan to help Muslims with limited income to perform the Hajj and Umrah.
The investment in the new company has been approved with $3m as the maximum limit.
At the same time, First Takaful announced annual financial results for 2020 that show the company reported a net loss of KWD5.70m ($18.8m) for 2020, compared to profits of KWD841,000 for 2019.
The company, established in 2000, did not post any operating revenue for 2020. Net operating loss stood at KWD804,509 for 2020 (2019: KWD14,743).
Its total equity attributable to shareholders stood at KWD8m at 31 December 2020. The KWD5.7m net loss for 2020 was largely due to a KWD4.94m loss in foreign currency translation reserves and loss of fair value on the revaluation of investment properties.
Last year, First Takaful completed the sale of its 35% stake in Turkey’s Neova Sigorta for around KWD12.14m.
The Kuwaiti insurer logged a loss of KWD4.7m at the exchange rate on the sale date. M