Abu Dhabi – October 23, 2019 - Insurance House P.S.C. (IH) has registered a Total Comprehensive Income of AED 13.12 million for the nine months ended 30 September 2019, which is nearly double the Total Comprehensive Income of AED 6.74 million registered in the corresponding period of the previous year.
Commenting on the first nine months of the year 2019 financial results, Mohammed Abdulla Alqubaisi, Chairman of Insurance House said: “Despite intense competition, subdued market conditions and elevated pressures on input costs, Insurance House was able to nearly double its Total Comprehensive Income in the first nine months of 2019 compared to the first nine months of 2018, through effective implementation of well thought out strategies across all business lines.”
“This is indeed a morale boosting performance for the Company and all its stakeholders. It is the result sustained turnaround in the core underwriting business, which is gathering further momentum”, added Alqubaisi.
“Going forward, the IH Management Team is confident of sustaining this growth momentum, not only in the last quarter of 2019 but also in 2020 and beyond”, concluded Alqubaisi.
Gross Premiums Written during the first nine months of 2019 soared by 18.60% to AED 195.84 million compared to AED 165.13 million logged during the same period of the previous year. In comparison, Net Claims Incurred during the first nine months of 2019 increased by a modest 10.13% to AED 69.38 million compared to AED 63 million during the same period in the previous year. The ratio of Net Claims Incurred as a percentage of Gross Underwriting Income held steady around the 60.5% mark. As a combined result of the above, Net Underwriting Income for the nine months ended 30 September 2019 grew by a robust 16.56% to AED 37.90 million compared to AED 32.52 million in the corresponding period of the previous year.
Mohammed Othman, Chief Executive Officer of Insurance House, commented: “This comes as a direct result of a series of strategic and tactical measures implemented by Insurance House Management to lower the cost of Claims Incurred across all business lines and carefully assess risks”.
Investment Income earned during the first nine months of 2019 more than doubled to AED 9.22 million compared to AED 4.07 million in the corresponding period of the previous year. This was achieved through a planned reallocation of investible surplus, to improve overall yield from a well-diversified investment portfolio. Cash & cash equivalents as of 30 September 2019 stood at a robust 22.98% of Total Assets, highlighting the sound liquidity position of the Company and its ability to take advantage of attractive investment opportunities that may arise in the near future.
“Our strategy is to compete on the basis of innovative 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”, added Othman.
As of 30 September 2019, Total Capital and Reserves received a 26.8% boost to AED 125.62 million compared to AED 99.10 million as of 31 December 2018. This was achieved through the successful issuance of a Tier 1 Perpetual Bond of AED 15 million and robust Total Comprehensive Income of AED 13.12 million for the first nine months of 2019. A maiden cash dividend distributed during the first half of 2019 is also an important milestone in the continued evolution of the Company.
“General & administrative expenses are higher than the previous year, but in line with our expenditure budget for 2019. Several key digital transformation initiatives are underway and we expect to reap the benefits of these initiatives from 2020 onwards”, concluded Othman.