Abu Dhabi – July 25, 2019 - Insurance House P.S.C. (IH)’s Total Comprehensive Income rises to AED 9.20 million for the first six months of 2019, which is more than double the Total Comprehensive Income of AED 4.35 million registered in the corresponding period of the previous year.
Mohammed Abdulla Alqubaisi, Chairman of Insurance House said: “This is a stellar performance under challenging economic conditions and a very encouraging sign for the Company.”
Despite systematic culling of unprofitable insurance policies, Gross Premiums Written during the first six months of 2019 were 16.1% higher at AED 144.66 million compared to AED 124.59 million logged during the same period of the previous year. On the other hand, Net Claims Incurred during first six months 2019 weighed in at AED 43.35 million compared to AED 35.09 million during the same period in the previous year. However, the ratio of Net Claims Incurred as a percentage of Net Premiums Earned, held steady to 55% in the first six months of 2019. This is a direct result of targeted measures implemented by IH Management to lower cost of Claims Incurred across all business lines. As a combined result of the above, Net Underwriting Income for the first six months of 2019 was 14.6% higher at AED 26.10 million compared to AED 22.77 million registered during the same period last year.
Net Investment Income from a well-diversified investment portfolio accounted for AED 6.48 million in the first half of 2019, compared to AED 1.51 million in the same period of the previous year.
General & Administrative Expenses were higher than the previous year but in line with IH’s expenditure budget.
“We remain optimistic of our profitable growth potential in the near future. Our strategy is to compete on the basis of innovative product offerings and superior service quality”, added Alqubaisi.
As of 30 June 2019, Total Capital and Reserves received a planned 23.2% boost to AED 122.09 million compared to AED 99.10 million as of 31 December 2018. This was achieved through the successful issuance of a Tier 1 Perpetual Bond of AED 15 million and robust Total Comprehensive Income of AED 9.20 million for the first six months of 2019.
IH also distributed its maiden cash dividend during the first half of 2019, which is an important milestone in the continued evolution of the Company.
Mohammed Othman, Chief Executive Officer of Insurance House, said: “We are focused on improving our digital service delivery capabilities across all business lines. Going forward, profits from core insurance activities will be driven by improved digital service delivery capabilities, continuous fine-tuning of risk underwriting techniques and enhanced claims management processes.”