Sukoon Takaful has reported a significant turnaround and a return to profitability in the financial year ended 31 December 2024.
After a comprehensive restructuring and integration with its parent company, Sukoon Insurance, the takaful company has demonstrated strong financial performance and operational improvements, according to a statement issued by the company.
Sukoon Takaful reported AED172.4m ($46.9m) in Gross Written Contribution (GWC) for 2024 and achieved a net profit before tax of AED21m, marking a successful turnaround. The company also boasts a robust solvency capital ratio of 174% (minimum regulatory requirement:100%), underscoring its strong financial position and ability to meet policyholder obligations. This positive result reflects the effectiveness of strategic initiatives implemented throughout the year, including portfolio optimisation, cost efficiencies and a renewed focus on core competencies, the company said.
Sukoon Takaful CEO Ahmed Abushanab said, "2024 was a pivotal year for Sukoon Takaful." He added, "Successful brand alignment with Sukoon Insurance, coupled with the decisive actions taken to restructure and streamline our operations, has yielded exceptional results.”
In addition to the strong financial results, Sukoon Takaful made significant progress in enhancing its customer experience and operational efficiency. The company invested strategically in digitalisation, streamlining processes and improving customer access to the parent company’s extensive resources, market expertise and specialised underwriting capabilities.
Sukoon Takaful’s strong solvency position is also reflected by the ‘A’ long-term insurer financial strength rating assigned by S&P Global.
Looking ahead
Mr Abushanab said, “Sukoon Takaful is well-positioned for continued growth and success. We will continue to invest in innovation, expand our product offerings and prioritise customer satisfaction. We are committed to being a leading reference in the region's takaful space."
About Sukoon Takaful
In 1978, Sukoon Takaful was incorporated by a group of entrepreneurs. By 1992, the company had become a fully national organisation and a public listed company.
Sukoon Insurance announced in May 2023 that it had completed the acquisition of 93.0432% of the share capital of the insurer, then known as Arabian Scandinavian Insurance Company - Takaful (ASCANA). The Dubai-listed company rebranded itself as Sukoon Takaful.