Insurance House (IH) has announced that the gross premiums written (GPW) during the half year ending 30 June 2014 totalled Dh58.09 million, nearly 39.2 per cent higher than the Dh41.74 million underwritten during the first half of the previous year.
The net written premiums during the first half of 2014 rose by 23 per cent to reach Dh31.11 million, compared to Dh25.29 million during the same period in the previous year.
IH registered net profit of Dh4.21 million during the half year ending 30 June 2014. Net underwriting profit for the half year ending 30 June 2014 was lower at Dh3.61 million compared to the same period last year, due to higher amount of claims paid under motor and medical insurance policies.
Mohammed Abdulla Alqubaisi, Chairman of Insurance House, said: “In an increasingly competitive insurance industry environment in the UAE, top line growth achieved by the company during the first half of 2014 is commendable. The challenge ahead is to translate this top line growth into sustained improvement in net underwriting profit. We are ready for this challenge.”
Underwriting profit from core insurance business was complemented by robust returns generated from a well-diversified and professionally managed proprietary investment portfolio. Income from investing activities during the first half of 2014 more than doubled to Dh13.75 million, compared to Dh5.18 million logged during the same period of the previous year.
Total assets as of 30 June 2014 grew to Dh259.83 million compared to Dh125.80 million when the company commenced operations barely three years ago.
As of 30 June 2014, shareholders’ equity strengthened to Dh143.30 million, compared to Dh140.27 million as of 31 December 2013. This is comfortably above the minimum required capital of Dh100 million mandated by the UAE Insurance Authority.
General and administrative expenses are higher than the same period last year primarily on account of branch network expansion and increased staff hires in line with sustained growth in gross premiums written.
Ahmad Idris, Chief Executive Officer of Insurance House, said: “Our strategy is to compete on the basis of innovative product offerings and superior service quality. Going forward, profits from core insurance activities will be driven by periodical fine tuning of our risk underwriting guidelines and through enhanced claims management.”