Insurance House Q1 net up 16pc
Abu Dhabi, April 16, 2013
Abu Dhabi-based Insurance House has registered a healthy net profit of Dh3.11 million ($829,180) in the first quarter with nearly 16 per cent jump over Dh2.69 million last year.
Total comprehensive profit for the quarter rose an impressive 35 per cent to Dh3.48 million compared to Dh2.58 million achieved during the first quarter last year.
Commenting on the results, chairman Mohammed Abdulla Alqubaisi said: “It is gratifying to see that all key business growth indicators for the quarter are positive, which is a reassurance that our strategies are working well. By continuously improving our execution capabilities, we should be able to achieve even better results going forward”.
"Most impressive is that the company’s actual net profit achieved during Q1 of its second year of operations is nearly 10 times the net profit forecasted for the full second year as per the distributed prospectus at the time of the Initial Public Offering(IPO)," he stated.
The gross premiums written (GPW) during the first quarter totaled Dh23.12 million, nearly 78 per cent higher than the Dh12.99 million written during the first quarter of the previous year.
The company's net earned premiums too more than doubled to Dh13.42 million, compared to Dh6.46 million in the same quarter of the previous year.
As a result of the above, the net underwriting profit after operating expenses was Dh4.93 million, which is a whopping 68 per cent higher than the Dh2.93 million achieved in the same quarter of the previous year.
Underwriting profit from core insurance business was complemented by robust returns generated from a diversified and professionally managed proprietary investment portfolio. Income from investing activities during the reporting period amounted to Dh2.45 million, compared to Dh2.81 million during the same quarter of the previous year.
The company's total assets as of March 31, 2013 stood at Dh275.5 million, compared to Dh125.8 million when the company commenced operations on April 11, 2011.
During the quarter, the total shareholders’ equity strengthened to Dh130.2 million as of 31 March 2013, compared to Dh126.7 million as of 31 December 2012. This is comfortably above the minimum required capital of Dh100 million mandated by the UAE Insurance Authority.
Mohammed Othman, the general manager said: “We have successfully negotiated the critical “market acceptance phase” and have firmly established Insurance House as a credible player in the UAE Insurance sector”.
“As a testimony, our Motor Insurance offering was recently adjudged as the ‘Best Motor Insurance Product in the Middle East’ by Banker Middle East Product Awards 2013. Recognition such as this one gives us the required moral boost to aim higher and achieve better”, concluded Othman.
On its future outlook, Othman said, "Insurance House is set for a very promising 2013, with various branch openings planned as per set expansion strategy, in an aim to reach the widest audience possible. Moreover, we expect to commence actual Share Buyback after obtaining all regulatory approvals and completing all procedural requirements."-TradeArabia News Service