Solidarity Bahrain, one of the largest insurance companies in the kingdom and a subsidiary of Solidarity Group Holding, delivered a robust financial performance in 2025, reflecting both strong organic growth and the successful execution of its strategic expansion initiatives, says the company's board of directors in a report in the 2025 audited annual financial statements.
Net profit and surplus for the year increased by 17% to BHD9.4m [$24.9m] (2024: BHD8.1m), driven by improved underwriting performance, portfolio diversification, and the positive impact of the acquisitions completed during the year.
Recognised takaful contributions increased by 59% to BHD94.1m (2024: BHD59.0m).
The Group maintained a prudent and resilient balance sheet position. The solvency ratio stood at 194%, comfortably exceeding the regulatory minimum requirements. Capital available to cover the solvency margin amounted to BHD14.8m, compared with the minimum solvency margin required of BHD6.3m for general takaful business and BHD1.3m for family takaful business.
Total equity attributable to shareholders increased by 38% to BHD54.6m at 31 December 2025 (end-2024: BHD39.5m). In light of these results, the board of directors is proposing a cash dividend of 25% for the year.
Strategic progress
In 2024, Solidarity launched its GROW strategy (2024–2026), focused on “Growth, Retention, Optimisation, and Work & Collaboration”, to support sustainable expansion and long-term value creation.
In 2025, the second year of the cycle, disciplined execution across all pillars delivered strong results, including 8% stand-alone revenue growth. A digital-first approach enhanced customer experience and retention, supported by initiatives such as Solidarity Drive, full digitisation of motor retail services, WhatsApp motor renewals, and AI-enabled solutions for car surveys and claims processing. Operational efficiency was further strengthened through the full integration of medical TPAs into the core system.
Strategic growth was also supported by expanded partnerships, including the launch of a Buy-Now-Pay-Later service, distribution through the Amen aggregator, and significantly strengthened bancassurance partnerships, resulting in 150% year-on-year growth in production.
Mergers and acquisitions
Following the successful merger and integration of AlHilal Life and AlHilal Takaful in prior periods, the Group further advanced its inorganic growth strategy in 2025 through the acquisition of 100% of the issued share capital of Bahrain National Insurance Company (BNI) and Bahrain National Life Assurance Company (BNL).
The completion of this strategic transaction represents a significant milestone for the Group, further consolidating the Group as the leading insurance and takaful provider in Bahrain. The acquisition enhanced the Group’s business profile, expanded its market share across both general and life insurance segments, and strengthened its earnings capacity through increased scale and diversification.
The successful execution and integration of these transactions underscore Solidarity’s proven capabilities in mergers and acquisitions and position the Group to capitalise on future growth opportunities, delivering sustainable value to shareholders and other stakeholders.
The company consolidated BNI and BNL into its financial statements, effective 1 April 2025, with the impact reflected from the second quarter of 2025.
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Solidarity Bahrain: Highlights of 2025 financial performance
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|
|
General Takaful Fund
|
Family Takaful Fund
|
Shareholders' Fund
|
Total
|
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|
Recognised takaful contributions
|
57,098
|
55,902
|
2,588
|
3,127
|
34,447
|
-
|
94,133
|
59,029
|
|
Recognised takaful costs
|
-35,340
|
-32,568
|
-1,837
|
-2,266
|
-24,790
|
-
|
-61,967
|
-34,834
|
|
Retakaful net results
|
-21,235
|
-22,789
|
-413
|
-578
|
-7,116
|
-
|
-28,764
|
-23,367
|
|
Takaful participants' gross margin
|
523
|
545
|
338
|
283
|
2,541
|
-
|
3,402
|
828
|
|
Net participants' investment income
|
460
|
831
|
135
|
138
|
-
|
-
|
595
|
969
|
|
|
|
|
|
|
|
|
|
|
|
Wakala fee income
|
-
|
-
|
-
|
-
|
12,394
|
13,589
|
12,394
|
13,589
|
|
Investment income, net
|
-
|
-
|
-
|
-
|
7,677
|
2,217
|
7,677
|
2,217
|
|
Mudarib share
|
-
|
-
|
-
|
-
|
396
|
646
|
396
|
646
|
|
Share of profit from associates
|
-
|
-
|
-
|
-
|
1,493
|
2,719
|
1,493
|
2,719
|
|
Other income
|
-
|
-
|
-
|
-
|
1,587
|
416
|
1,587
|
416
|
|
Total shareholders' income
|
-
|
-
|
-
|
-
|
23,547
|
19,587
|
23,547
|
19,587
|
|
Employee costs
|
-
|
-
|
-
|
-
|
-5,359
|
-4,626
|
-5,359
|
-4,626
|
|
Commission expenses incurred
|
-
|
-
|
-
|
-
|
-3,140
|
-3,348
|
-3,140
|
-3,348
|
|
TPA fees
|
-
|
-
|
-
|
-
|
-919
|
-838
|
-919
|
-838
|
|
Other expenses
|
-
|
-
|
-
|
-
|
-7,788
|
-3,884
|
-7,788
|
-3,884
|
|
Total shareholders' expenses
|
-
|
-
|
-
|
-
|
-17,206
|
-12,696
|
-17,206
|
-12,696
|
|
Net profit for the year
|
563
|
936
|
134
|
241
|
8,724
|
6,891
|
9,421
|
8,068
|
Future outlook
The Bahrain insurance industry is poised for sustained steady growth, with the health insurance segment anticipated to undergo substantial expansion driven by rising premiums, regulatory improvements, and increasing demand for private healthcare coverage. A key driver of this momentum is the phased rollout of mandatory health insurance under the Supreme Council for Health’s initiative, with the initial phase scheduled to commence in 2026, targeting residents and expatriate workers, providing comprehensive access to private medical services.
Furthermore, the increasing emphasis on digitalisation and enhanced online engagement with customers is expected to improve accessibility and efficiency, thereby providing clients with more seamless and convenient services.
Overall, Bahrain’s economic and insurance sector outlook for 2026 and beyond is optimistic, underpinned by strategic regulatory adjustments and technological integration that promote enduring stability and pave the way for long-term growth.