Abu Dhabi, 17 July, 2013 - Insurance House P.S.C (IH) has registered a robust Total Comprehensive Profit of AED 7.12 million during the half year ending 30 June 2013, nearly 22.4% higher than the Total Comprehensive Profit of AED 5.81 million registered in the corresponding period of the previous year.
Gross Premiums Written (GPW) during the half year ending June 2013 totaled AED 41.74 million, nearly 56.2% higher than the AED 26.72 million underwritten during the first half of the previous year.
Net Earned Premiums during the first half of 2013 more than doubled to AED 25.29 million, compared to AED 12.55 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 108.4%) to AED 8.18 million, compared to AED 3.92 million achieved during the first half 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 during the first half of 2013 amounted to AED 5.18 million, compared to AED 8.33 million during the same period of the previous year. The latter includes one-off capital gains from disposal of fixed income securities during the first half of the previous year.
Total Assets as of 30 June 2013 stood at AED 258 million, compared to AED 125.8 million when the company commenced operations on 11 April 2011. As of 30 June 2013, Total Shareholders’ Equity strengthened to AED 133.4, compared to AED 126.7 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 from 22.19% last year to 18.15% this year, manifesting tighter cost control measures at work.
Commenting on Insurance House’s results, Mohammed Abdulla Alqubaisi, Chairman of Insurance House said: “In an increasingly competitive insurance industry environment in the UAE, Net Underwriting results achieved by the company during the first half of 2013 are commendable. Maintaining top line growth is important, but even more important is the ability to achieve substantial improvement in Net Underwriting Profit. It is gratifying to note that the company has met both these key objectives during the first half of 2013”. 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 Mohammed Othman, General Manager-Insurance House, “Our transition from a start-up to a credible player in the UAE’s insurance market has been achieved at a rapid pace. The two awards we have received this year are a testimony to this fact. The challenge ahead is to maintain this profitable growth trajectory without comprises in our innovative spirit, exceptional product quality and high service standards. We are ready and able to face this challenge.” “We are proud of our achievements to date and are thankful to our loyal customers and employees, without whose support these remarkable achievements would not have been possible” added Alqubaisi.