Abu Dhabi, 21 October, 2013 - Insurance House P.S.C (IH) has registered a robust increase of nearly 35.6% in its Total Comprehensive Profit, amounting to AED 9.70 million for the nine months ending 30 September 2013, compared to AED 7.15 million registered in the corresponding period of the previous year.
Gross Premiums Written (GPW) during the nine months ending 30 September 2013 increased by nearly 67.4%, totaling AED 74.63 million compared to AED 44.58 million underwritten during the first nine months of the previous year. Net Earned Premiums up to 30 September 2013 more than doubled to AED 51.47 million, compared to AED 24.86 million during the same period in the previous year. As a result of the above, Net Underwriting Profit after Operating expenses more than doubled (up 120.3%) to AED 10.18 million, compared to AED 4.62 million achieved during the first nine months of the previous year.
Underwriting Profit from core insurance business was complemented by steady returns generated from a well-diversified and professionally managed proprietary investment portfolio. Income from investing activities for the nine months ending 30 September 2013 amounted to AED 11.37 million, compared to AED 15.04 million during the same period of the previous year. The latter includes one-off capital gains from disposal of fixed income securities during the previous year.
As of 30 September 2013, Total Shareholders’ Equity strengthened to AED 136.02 million, compared to AED 126.68 million as of 31 December 2012. This is comfortably above the minimum required capital of AED 100 million mandated by the UAE Insurance Authority.
General & administrative expenses are higher than the same period last year primarily on account of increased staff hires in line with sustained growth in Gross Premiums Written. However the ratio of general and administrative expenses to GPW has dropped significantly from 26.91% last year to 18.30% this year, manifesting tighter cost control measures at work.
Commenting on Insurance House’s results, Mohammed Abdulla Alqubaisi, Chairman of Insurance House said: “Net Underwriting results achieved by the company during the first nine months of 2013 are commendable. It reinforces our belief that even in a saturated market with many players, it is possible to maintain robust top line and bottom line growth, as long as we can successfully design and market innovative products & services that deliver outstanding value to target customer segments.”
In June 2013, the Company was adjudged by Banker Middle East Industry Awards as the “Best Local Insurance Company”. Earlier this year, the Motor insurance product offering from Insurance House was adjudged as the “Best Motor Insurance Product in the Middle East” under the Product Category Awards. According to Ahmad Idris, Chief Executive Officer, Insurance House, “Unrelenting focus on understanding and meeting our customers’ needs, product innovation and superior customer service has helped us to deliver excellent results to date. We intend to maintain this course to achieve sustained profitable growth in the near future as well.”
“We are proud of our achievements to date and are thankful to our loyal customers and employees, without whose support this remarkable performance would not have been possible” added Alqubaisi.