Wataniya Takaful, one of the leading insurance companies in UAE, reported higher profits in the first quarter of 2018.The Net Profit was AED3.6mn in the first quarter compared to AED33,000 for the corresponding period in 2017, driven by medical and technical accompanied by improvement in combined operating ratio which is a key performance indicator of the health in Takful’s company portfolio.
Commenting on the Group's first quarter results for 2018,HE Dr. Ali Saeed bin HarmalAl Dhaheri, Chairman of the board of Wataniya Takaful Company said “The first quarter of 2018 has been very encouraging.” “The business recorded a growth of 78% which was mainly driven by Medical and Technical (which comprises of Fire/ Engineering & Miscellaneous). An important aspect of the growth was that it was accompanied by improvement in Combined Operating Ratio which is a key performance indicator of the health of our takaful portfolio. The profit from operations was AED1.9mn compared to a deficit of AED1.5mn for the corresponding period in 2017. The Net Profit was AED3.6mn in the first quarter compared to AED33,000 for the corresponding period in 2017. In short, very positive start to the year!” he continued.
The Chairman of the board said that the growth in business and profit is definitely a very positive development that gives us the confidence that our strategy is working, and the Company is on the right track. However, we must not forget that Company is coming out of a situation that resulted in significant erosion of shareholder’s capital. While the turnaround that started from 2016 has been gaining momentum, it is critical that we continue to build on this success and strengthen the financial based of the Company. So, our drive for growth and profits is measured and the focus is to attain a stable and sustainable platform for our business to continue to expand. We will continue to identify opportunities for expansion and new activities that are aligned with our medium and long terms strategy for the Company. I am confident that our stakeholders will benefit from this measured approach.
Explainingthe competition’s effect on the company’s achievements HE said: “There are over 60 companies in the insurance market of which 11 companies are Takaful. I agree that in a market like UAE the number of companies are far in excess of its requirement. In the short term this can have a negative impact on the objectives of the Company. However, we believe that our strategy looks at the long term where our business is based on core values of protection, security and service. This will ensure a loyal base of policyholders that will be the centerpiece of company’s achievements. We are confident that with focus and discipline we will be able to handle the competition that we may face in this segment”.
Chairman of the board of Wataniaclarified thatthe too profitable growth is critical to survival. At one point they will have to look beyond the local market to maintain this growth. It is, however, very important for the Company to solidify its local base before looking outwards, and they will look at it proactively when the time is right.
Speaking about the importance for adapting the latest technology and IT Solution to upscale the company’s services & activitiesAl Dhaheri said: “We can see that technology has made a significant impact in the way we live our lives. It has changed our society’s behavior pattern and this is clear with the young generation – the millennials. For us the impact of technology is in two key areas – managing and understanding our data better and based on this analysis be able to provide solutions in a cost-effective manner. So we are focused on making this transformation that will gradually encompass all aspects of our business. We are in the initial stages of this transformation and we will share this with our market in the near future.”
Commenting on the activities that the Company will undertake during “Zayed Year” 2018, Chairman of the board of Watania Takaful said: “The Company, and as a part of its development undertakes many activities. The Company started an initiative in 2016 which was called Watania Knowledge Sharing Platform. The Company conducted workshops with intermediaries and customers in the market to develop better understanding of Takaful and Insurance. The Company has conducted one workshop in Q1 dealing with a very important subject of Cyber Security and insurance of such risks.
As this is the year of Sh. Zayed the Company, during the holy month of Ramadan will donate a food packet for every comprehensive motor policy purchased and will support road traffic safety through messages on the radio. The Company will also launch a special offer program during the month of Ramadan where our Customers will be given special discounts on Home, Travel and Domestic Staff Medical Insurance, and various other special surprises. I would urge the Customers to visit our website and our Facebook page for more information”.
At the end of his speech, Al Dhaherithanked the shareholders and his fellow Directors for electing him as the Chairman of the new Watania Board. Adding “I am mindful of the leadership responsibilities and working as a team with my fellow Directors and the management team I am confident that our progress will be even stronger in the coming years.”