Abu Dhabi – March 21, 2019 – Insurance House PSC (IH) Annual General Meeting approved the distribution of a 1% cash dividend to its shareholders for the first time since inception while presenting its positive financial results for the year ended 31 December 2018.
In his address to the shareholders, Mohammed Abdulla Alqubaisi, Chairman of Insurance House, said: “During 2018, IH maintained a steady improvement in its overall performance by registering a Net Profit of AED 10.64 million for the year ended 31 December 2018 which is 28.9% higher than the Net Profit of AED 8.12 million registered in the previous year. This augurs well for sustained profitable growth in the near future.”
Alqubaisi added: “Systematic selection of underwritten risks and overall softening of the insurance market in the UAE, resulted in slightly lower Gross Premiums Written of AED 210.88 million during 2018 compared to AED 219.47 million logged during the previous year. Cash & Cash Equivalents stood at a robust 19.4% highlighting the sound liquidity position of the Company.”
Net Claims Incurred during 2018 registered a dramatic but healthy drop of 20.84% to AED 84.44 million compared to AED 106.67 million during the previous year. This is a direct result of a series of strategic and tactical measures implemented by IH Management to lower cost of Claims Incurred across all business lines. The ratio of Net Claims Incurred as a percentage of Net Premiums Earned, registered a remarkable improvement to 56.9% in 2018 compared to 67.6% in the previous year. As a result of the above, Net Underwriting Income for 2018 jumped by 24.2% to AED 45.75 million compared to AED 36.85 million registered during the previous year.
Despite intense competition, softer market conditions and elevated pressures on input costs, the Company was able to register a year on year improvement of 28.9% in its Net Profit, through well thought out strategies and their effective implementation across all business lines. Going forward, it will be our endeavor to build on this significantly improved performance of the previous two years viz. 2017 & 2018.
During the year 2018, Insurance House expanded its customer reach within the UAE through the addition of two new branches - one in Deira, Dubai and the other inside Muroor, Abu Dhabi, bringing its total branch network in the UAE to 8 branches, in addition to the Abu Dhabi head office.
Alqubaisi concluded: “We remain optimistic of our profitable growth potential in the near future. Our strategy is to compete on the basis of differentiated product offerings, improved digital capabilities and superior service quality. Going forward, profits from core insurance activities will be driven by continuous fine-tuning of our risk underwriting capabilities, increased use of digital channels to extend customer reach and enhanced controls in our claims management processes.”