With a great sense of pleasure, pride and privilege I welcome you all on behalf of the Board of Directors, at the eighth Annual General Meeting of Insurance House PSC.
First and foremost, I would like to thank our founders, shareholders and all Insurance House staff who helped further develop and grow Insurance House into the enterprise it is today, one that is focused on exceeding customers’ expectations and maximizing shareholders’ wealth.
During 2019, IH has registered a whopping year on year improvement of 51.9% in its Net Profit, to AED 16.17 million in 2019 compared to AED 10.64 million in the previous year. This stellar performance is a direct result of well thought out strategies and their effective implementation across all business lines and investment portfolio.
Gross Premiums Written during 2019 were 11.8% higher at AED 235.82 million compared to AED 210.88 million written during the previous year. Net Premiums Earned in 2019 were higher at AED 153.13 million compared to AED 148.37 million in the previous year. At the same time, Net Claims Incurred during 2019 were held flat at AED 84.41 million compared to AED 84.44 million in the previous year. As a combined result of the above, Net Underwriting Income for 2019 increased by 12.7% to AED 51.57 million compared to AED 45.75 million registered during the previous year. This is a direct result of a series of strategic and tactical measures implemented by IH Management to lower cost of Claims Incurred across all business lines.
Despite volatile equity markets and falling real estate prices, overall Investment Income from a carefully managed and well-diversified investment portfolio was higher by 57.8% at AED 6.89 million in 2019 compared to AED 4.36 million in the previous year. Cash & cash equivalents as of 31 December 2019 stood at a robust 22.4% of Total Assets, highlighting our conservative approach to investments & liquidity management under volatile market conditions, as well as the sound liquidity position of the Company.
General & administrative expenses are higher by 11% than the previous year but well within the planned expenditure budget for 2019. We continue to maintain a close vigil to ensure that expenses are on a tight leash.
Despite intense competition, softer market conditions and elevated pressures on input costs, the Company was able to register a whopping year on year improvement of 51.9% in its Net Profit, to AED 16.17 million in 2019 compared to AED 10.64 million in the previous year. This stellar performance is a direct result of well thought out strategies and their effective implementation across all business lines and investment portfolio. Going forward, it will be our endeavor to build on this consistently improving performance of the previous three years viz 2017, 2018 and 2019.
Another key highlight of the year 2019 is the maiden credit rating of the Company where IH has been assigned a Long-Term Issuer Credit Rating of “BBB-” and a Financial Strength Rating of “B+” (Good) by AM Best, the international credit rating agency. The outlook assigned to these Credit Ratings is “Stable”. This independent affirmation of our investment grade credit rating by an international credit rating agency such as AM Best will not only strengthen our existing business relationships, but will also open doors to many new relationships across the globe.
Our strategy is to compete on the basis of differentiated product offerings, 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 controls in our claims management processes.
With Appreciation & Gratitude
I take this opportunity to acknowledge and place on record my sincere appreciation & gratitude to:
- our loyal customers for their continued patronage and constructive feedback;
- the UAE Insurance Authority, the UAE Ministry of Economy, the Securities and Commodities Authority, the Abu Dhabi Department of Economic Development and the Abu Dhabi Securities Exchange for their continued guidance and valuable support;
- our shareholders for their unwavering confidence and patience;
- our management and staff for their commendable teamwork positive attitude, dedication to duty & untiring efforts and, their continuous passion that puts us ahead of the market;
- fellow Board members for their pro-active guidance and valuable inputs.
We express our sincere gratitude to the Government of the UAE under the visionary leadership of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai, His Highness General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces as well as Their Highnesses, the Rulers of various Emirates and Supreme Council Members for their progressive leadership.
On behalf of the Board of Directors,
Mohammed Abdulla Jumaa Alqubaisi