I am glad to present Takaful International’s operational and financial results for the year ended 31st December 2009. Yet another year passed satisfactorily although all facing all the challenges inflicted by the global and regional financial crisis where the global economy was shaken to its core with a severity that could not have been foreseen. The year was full of challenges due to the after effects of the financial turmoil, increased competition between the various players in the region and the slowdown in the real estate and other industries business. Despite all the tough challenges, I am glad to mention that your company emerged successfully and recorded a growth in its business compared to the previous year.

Alhamdulillah, the year 2009 ended on a satisfactory note for Takaful International by being able to achieve good results especially in the underwriting operations and also the investments looking at the global and the regional market scenarios where the company followed a conservative and balanced policy in managing its investments portfolio which was a prudent decision looking at the surrounding financial market situation. I would acknowledge this to the great team work and spirit of the entire Takaful staff which also reflects the capability and professional approach of the managerial, technical and marketing team in the company.

Takaful is not only an insurance company but an Islamic and cooperative insurance service provider which strongly believes in providing the ultimate satisfaction to customers and assume the primary duty to provide complete peace of mind by covering their risk and helping the unfortunate through a cooperative activity. Our objective is to provide a satisfactory service of care and cooperative assurance to its policyholders by securing them on their insurable risks. The underwriting at Takaful is done on a prudential manner and the key to being able to select those businesses that promise the strongest profitability. Thus despite high competition Takaful International is doing very well and with the development of Takaful products there is a huge untapped scope of growth for the takaful industry even in this market environment.

Needless to mention that the financial results could be achieved only due to the excellent cooperation and coordination of the entire Takaful team who drove their performance by seizing attractive opportunities, leveraging on the integration of takaful solutions and constantly striving towards our strategic goals of organizational excellence. The credit goes to the entire Takaful team; all the departments; Management, Board and all other stake holders who have contributed to the success of Takaful.

Strong Corporate Governance policy has always been the key to any financial organizations growth. Takaful International follows the best standards of corporate governance to protect the interest of all the concerned parties, including the shareholders and policyholders.

Our strategic direction focuses on the following key objectives to deliver enhanced sustainable returns for the participants and the shareholders:

The 2009 results show how these powerful combination of our above strategies have driven our performance, allowing us to deliver best in class client service and, ultimately, attractive returns for our participants and shareholders.

Our strategic objectives have been embedded in all of Takaful International’s activities, helping us to further improve our economic efficiency. Our business goals are simple: to ensure growth in earnings per share, to pursue high quality business rather than volume for volume’s sake as is evident in our financial highlights in terms of improved claims ratio and decent profits for the participants and shareholders. This is further supported by continuously expanding the scope and the range of services we provide to our esteemed clients in all lines of business and regions.

Takaful’s success is built on the superior client services, pro-active capital & investment management, diligent and disciplined underwriting, and dynamic growth through new products and markets. Our focus is to deliver attractive risk-adjusted returns for our policyholders and shareholders which can be seen from the above financial result highlights.

Takaful’s organizational structure, as well as its risk and capital management assurance functions are defined by a governance framework that supports the company’s success, and protects the interests of shareholders and other stakeholders. Takaful’s strategic direction supports a disciplined approach to delivering the best in class customer service and attractive shareholder returns.

Takaful is closely aligned with its business focus on profitable growth, efficient use of capital and bringing the Company closer to clients. Takaful’s employees combine expertise, creativity and sound judgment to deliver world-class services for its clients. Takaful drives performance contributing to its clients’ success, enabling economic growth, and leveraging its expertise and long standing history to identify future trends and market opportunities.

In view of our stable financial standing, our business prospects for 2010 are therefore exceptionally bright. Your company is very well equipped to make the most of the year 2010. Our resources are strong and solid. This was reinforced by the rating agency Standard and Poor’s which confirmed our rating with BBB with a stable outlook. We thus continue to be a preferred partner for our clients.

We have embarked on 2010 with high confidence and even higher expectations for the continuing success of your company in delivering sustainable and strong earnings per share. With the 2009, continued support of all our customers, growth in the market share and other value added advantages like the new Information Technology, expertise technical and professional team, plans of expansion, diversification and spreading the wings across the region by marking our presence in all the strategic location by opening new branches, Takaful is all set and ready to face the future challenges and to attain higher goals with greater confidence to march ahead and capture greater market share and to provide the best valuable services to its policyholders and shareholders always.

At Takaful the focus is towards fulfilling its obligations to its stakeholders, clients and business partners. We have clearly set ourselves areas of attention towards which the entire team is functioning. Our efforts converge in this direction of meeting diverse expectation from those around us.

I extend our sincere thanks and appreciations to His Majesty “King Hamad Bin Isa Al Khalifa”, the King of Bahrain, His Royal Highness “Prince Khalifa Bin Salman Al Khalifa”, The Prime Minister and His Royal Highness “Prince Salman Bin Hamad Al Khalifa”, The Crown Prince and Supreme Commander of Bahrain Defence Force for the continued support to the National Financial Institutions.

I express our sincere thanks to all the Government Ministers, Central Bank of Bahrain team and other Departments for their support and co-operation.

I also take this opportunity to thank and appreciate the staff and the management of Takaful International for their continued efforts, sincerity and loyalty to their duties. I also express my sincere thanks to Company’s Shareholders, Clients and all those institutions and individuals with whom the Company deals in Bahrain locally and internationally.