ABU DHABI / Emirates Business
Watania Takaful Company, one of the leading insurance companies in the UAE, announced on Tuesday a net profit of AED7.8 million for the first half of this year the company delivered, marking an increase of 190 percent compared to AED2.7 million in the same period last year. The company pointed out the most notable feature of its performance during the first half of 2018 which was its consistency on quarter basis ever since the new strategic initiative was implemented by the board in 2016.
HE Ali Said Bin Harmel Al Dhaheri, Watania Takaful Board Chairman, stressed the importance of the company’s implementation of the new strategic initiative which has led to the development of the company’s performance since its implementation in 2016. The profit of the company translates into ROE of 17% on annualised basis, which is the product of key highlights of performance in H1 2018, which were broad-based growth in medical, property, engineering and motor insurance services. This upgrade has improved in loss ratio as well as operation expense ratio, leading to an enhancement in combined operating ratio, and stable investment income. This has played a significant role in the improvement process of the company’s net profit.
“It may interest the market to note that Watania has taken a very traditional approach in its business. This is the reason we called our new business initiative ‘back to basics’. What makes Watania different is its ‘discipline’ and ‘focus’. We are focussed on delivering value to all our stakeholders,” HE added.
Al Dhaheri said: “The performance of the company during the first half of 2018 was in line with its business objectives. The gross written premium for the first half of 2018 increased by 41.7% over corresponding period of 2017 with all product lines — medical, motor, property and engineering delivering good growth in spite of tough market conditions. The operational results were also strong with claims ratio — a key performance indicator — showing an improvement to 59.5% in H1 2018 from 68.1% in H1 2017. Combined operating ratio improved to 94.5% from 99.9% due to control in expense growth and lower claims ratio. Investment income for the period grew by 18.2% as compared to H1 2017 led by improvement in yield and investment book.”
“The company has been meeting its growth targets and plans for future include innovative approaches to product development, technology platform and customer service. The intention is to create necessary infrastructure and the eco-system for growth in 2019 and 2020,” he continued.
Al Dhaheri concluded his speech saying, “The UAE insurance market is one of the most competitive if not the most competitive market in the region. There are 62 insurance companies and 160 insurance brokers across the UAE, which creates an intense pressure in maintaining profitable growth in business as well as market share. Economic conditions continue to be challenging but we are optimistic about our future. We believe that every challenge comes with an opportunity. We are focussing on these opportunities and are exploring new means to seize them and maintain our progress. I believe that Insurance Authority’s initiative in strengthening the insurance industry and will result in a wave of consolidation that will benefit companies and will provide customers with better service levels and better solutions.”