Watania Takaful net profits up by 78% in 9 months

ABU DHABI, National Takaful Company, Watania, announced positive financial results in 9 months during the financial of 2020, as the company’s net profits are up by 78 percent compared to corresponding period last year. The Company achieved net profit of AED17.8 million in 9 months during the financial year 2020 as against AED10.0 mn in nine months for the financial year 2019.

Dr. Ali Saeed Bin Harmal Al Dhaheri, Chairman of Watania, said on the occasion of the announcement of the company’s results that the highlight of this performance is its Takaful operation which recorded a surplus of AED12.5 mn compared to AED4.7 mn for the same period in 2019 establishing a growth of 168 percent.

“Despite a depressed and volatile investment market, the Company maintained its investment income at the same level as previous year, and was able to reduce its loss ratio from 63 percent in 2019 to 56 percent in 2020, and at the same time maintaining a tight control over its expenses,” said Dr. Al Dhaheri.

As a result, the Combined Operating Ratio, which is a key measure of an insurance company’s performance, improved from 97 percent in 2019 to 92 percent in 2020. The Company saw a slowdown in its growth of business as its gross contribution fell by 7 percent.

Regarding the Corona pandemic effect on the company’s business during the first nine months of this year, Dr. Al Dhaheri stated that the pandemic had a significant impact on all aspects of our lives. Companies had to change their business process to keep their employees and customers safe.

“We have adopted technology in a way that was not thinkable a year ago. We are still gauging the impact of COVID-19 in terms of our prospects. We expect the growth to be impacted till the pandemic has been brought under control. On the other hand, we also believe that positive learnings from adapting to new way of doing business will help innovation, reduce costs and maintain profitability,” stated Dr. Al Dhaheri.

 

Source: Emirates News Agency

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