Insurance House (IH), listed on the Abu Dhabi Securities (ADX), revealed it generated total comprehensive income of AED 9.20 million for the first half of 2019, compared to AED 4.35 million H1-18.
The company’s gross premiums written grew by 16.1% to AED 144.66 million in H1-19, versus AED 124.59 million in the prior-year period, according to a press release.
Meanwhile, net claims incurred stood at AED 43.35 million in the six-month period ended 30 June 2019, compared to AED 35.09 million in the same period a year earlier, Insurance House added.
“However, the ratio of net claims incurred as a percentage of net premiums earned, held steady at 55% in the first six months of 2019. This is a direct result of targeted measures implemented by IH Management to lower cost of Claims Incurred across all business lines,” the release highlighted.
Net underwriting income increased by 14.6% year-on-year for H1-19 to AED 26.10 million from AED 22.77 million, the company remarked.
Moreover, net investment income from a well-diversified investment portfolio amounted to AED 6.48 million in H1-19, versus AED 1.51 million in H1-18.
The company’s general and administrative expenses were higher as compared to the previous year but in line with the company’s expenditure budget.
Mohammed Abdulla Alqubaisi, chairman of Insurance House, said: “This is a stellar performance under challenging economic conditions and a very encouraging sign for the Company.”
“We remain optimistic of our profitable growth potential in the near future. Our strategy is to compete on the basis of innovative product offerings and superior service quality”, added Alqubaisi.
The successful issuance of a Tier 1 Perpetual Bond of AED 15 million has boosted the company’s total capital and reserves by 23.2% to AED 122.09 million as of 30 June 2019, compared to AED 99.10 million as of 31 December 2018.
It is worth noting that HI distributed its maiden cash dividend in H1-19.
During the first quarter of 2019, IH’s total comprehensive income increased to AED 6.45 million, compared to AED 4.98 million in Q1-18.