Abu Dhabi – 16 February 2020 - Insurance House P.S.C. (IH) registered a whopping year on year improvement of 51.9% in its Net Profit, to reach AED 16.17 million in 2019 compared to AED 10.64 million in the previous year, resulting in proposing the distribution of a 4% Cash Dividend for the year.
Total Comprehensive Income, more than doubled to AED 18.74 million for the year ended 31 December 2019, compared to AED 7.43 million registered in the previous financial year, which is considered a very encouraging sign for the company and provides a solid foundation for sustained profitable growth in the near future.
Commenting on the results, Mohammed Abdulla Alqubaisi, Chairman of Insurance House, said: “The performance of Insurance House during the year exceeded expectations. This stellar performance is a direct result of well thought out strategies and their effective implementation across all business lines and investment portfolio. Going forward, it will be our endeavor to build on this consistently improving performance. Insurance House has embarked on an ambitious digital transformation journey to harness the power of digital information and technologies to enhance business performance.”
Gross Premiums Written during 2019 were 11.8% higher at AED 235.82 million compared to AED 210.88 million written during the previous year. Net Premiums Earned in 2019 were higher at AED 153.13 million compared to AED 148.37 million in the previous year. At the same time, Net Claims Incurred during 2019 were held flat at AED 84.41 million compared to AED 84.44 million in the previous year. As a combined result of the above, Net Underwriting Income for 2019 increased by 12.7% to AED 51.57 million compared to AED 45.75 million registered during the previous year. Total Capital & Reserves of the Company as of 31 December 2019 received a 33.6% boost to AED 132.38 million compared to AED 99.10 million as at the end of the previous year. In addition to healthy and sustained internal generation of profits throughout 2019, Total Capital & Reserves were also boosted by the successful issuance of a Tier 1 Perpetual Bond of AED 15 million in Q1 2019.
Mohammad Othman, Chief Executive Officer of Insurance House said: “Despite the softer market conditions and elevated pressures on input costs, the overall Investment Income from investment portfolio was higher by 57.8% at AED 6.89 million in 2019 compared to AED 4.36 million in the previous year. Cash & cash equivalents as of 31 December 2019 stood at a robust 22.4% of Total Assets. This indicates the strength and effectiveness of our strategy which is focused on improving the efficiency of our business by providing innovative products and advanced digital solutions and high levels of service.
Othman added: “Another key highlight of the year 2019 is the maiden credit rating of the Company where IH has been assigned a Long-Term Issuer Credit Rating of “BBB-” and a Financial Strength Rating of “B+” (Good) by AM Best, the international credit rating agency. The outlook assigned to these Credit Ratings is “Stable”. This independent affirmation of our investment grade credit rating by an international credit rating agency such as AM Best will not only strengthen our existing business relationships, but will also open doors to many new relationships across the globe.”