Insurance House profit tops $2m; beats forecast
Abu Dhabi, March 25, 2013
Abu Dhabi-based Insurance House (IH) recently held its first annual general meeting and announced a net profit of Dh7.54 million ($2.05 million) in 2012, exceeding the forecasted profits set for the year.
Gross Premiums Written (GPW) during this maiden reporting period totaled Dh78.4 million. Total Assets grew by 140 per cent to Dh 302.6 million as of December 31, 2012 compared to Dh125.8 million as of April 11, 2011.
Mohammed Abdulla Alqubaisi, chairman of Insurance House, said: “We have closed 2012 by achieving significantly more than what we had expected.”
“This remarkable performance has been achieved in an increasingly competitive market, and whilst we were going through the process of establishment, brand-building and development of policies, procedures and systems for a start-up enterprise where we have skillfully overcome these challenges and seized attractive business opportunities to register a robust financial performance in the very first year of operations.
“In the core insurance business our key focus areas are Product Innovation, Superior Service & Efficient Claims handling Interface. Through continuous enhancement of our capabilities in all three areas, we aspire to build a loyal base of discerning customers,” he added.
While the Board has not recommended any cash dividend payment for the year, it has decided to initiate a Share Buyback Program for up to 10 per cent of the company’s shares. Necessary regulatory approvals for the Share Buy Back Program have been obtained, a statement said.
“We believe that there is no better investment we can make than in our own future. The share buyback initiative is in the best interests of our shareholders and the company and is intended to enhance shareholders’ value,” added Alqubaisi.
“The recorded income from investing activities amounting to Dh23.5 million shows that our investment strategy was well thought and clearly documented in a professionally developed Investment Policy Manual that covers asset selection criteria, asset allocation guidelines and exit strategies amongst others.
“There is also an in-built review mechanism for periodic fine-tuning of investment strategy in line with changes in the local and global investing environment,” continued Alqubaisi.
Since inception, Insurance House has crossed several major milestones at a rapid pace- first successful post-financial crisis IPO in the UAE, operating break-even in less than 12 months from commencement of operations, impressive list of Class A clients, an attractive bouquet of tailor-made insurance solutions and rapid expansion of branch network, he noted.
“We have been able to attract to our ranks, top caliber insurance professionals with extensive experience in the UAE market,” Alqubaisi said.
“More than 14 per cent of the company’s current workforce comprises of UAE nationals, manifesting our strong commitment to the development of UAE nationals in the insurance sector. In recognition of our commitment and ongoing efforts to develop UAE nationals in the insurance sector, the UAE Insurance Authority presented the Company with an award in November 2012,” he added.
“We look forward to 2013 with optimism and have accordingly set ambitious business growth targets. Our strategy is sound and is backed by a robust infrastructure that is geared to deliver profitable growth and maximized returns to our shareholders,” the chairman concluded. – TradeArabia News Service
More Finance & Capital Market Stories
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs