Abu Dhabi-based Insurance House (IH) registered a net profit of Dh8.39 million ($2,28 million) during the first nine months of the year, which is more than double its net profit of Dh3.86 million registered in the corresponding period 2017.

Mohammed Abdulla Alqubaisi, chairman of Insurance House said: “This is a very encouraging sign for the Company, as the remarkable turnaround in the core business operations of Insurance House gathers momentum.”

”Despite intense competition, softer market conditions and elevated pressures on input costs, the Company was able to more than double its net profit in the nine months of 2018 compared to the same period of 2017, through well thought out strategies and their effective implementation across all business lines. We will strive to sustain our significantly improved performance throughout 2018 and beyond,” added Alqubaisi.

Gross Premiums Written during the first nine months of 2018 weighed in at Dh165.13 million, compared to Dh180.62 million logged during the same period of the previous year. On the other hand, Net Claims Incurred during this period registered a dramatic, but healthy, drop of 22.4 per cent to Dh63 million compared to Dh81.17 million during the same period in the previous year.

The ratio of net claims Incurred as a percentage of net premiums earned, registered a remarkable improvement down to 55.8 per cent in the first nine months of 2018 from 68.3 per cent in the same period of 2017. As a result of the above, the net underwriting income for the first nine months of 2018 jumped by 42.4 per cent to Dh41.14 million compared to Dh28.89 million registered during the same period of last 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”.

With the addition of a stable rent yielding investment property in Q1 2018, the Investment Income earned during the first nine months of 2018 rose to Dh4.99 million compared to Dh2.26 million in the same period of last year.

During the first nine months of 2018, Insurance House further expanded customer reach within the UAE through the addition of two new branches, the first in Deira, Dubai and the other inside Muroor, Abu Dhabi. This brings the total branch network in the UAE up to 8 branches, in addition to the Abu Dhabi head office.  General and Administrative Expenses rose in the first half of 2018 but remain within the expenditure budget and Insurance House continues to maintain a close vigil to ensure that expenses are on a tight leash in order to ensure its continued success.

“We remain optimistic of our profitable growth potential in the near future. Our strategy is to compete on the basis of innovative product offering, 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 claims management processes,” concluded Othman. – TradeArabia News Service