UAE: RAK Insurance's 1H profits soar over 200%

Source: Middle East Insurance Review | Sep 2015

Ras Al Khaimah National Insurance (RAK Insurance) saw its net profit for the first half of this year surge by 233% to AED19.8 million (US$5.4 million) compared to AED5.94 million for the corresponding period last year, according to statements filed with the Abu Dhabi Securities Exchange.

The improvement was due to higher net insurance premiums, which totalled AED111.56 million in the first half, 47% more than the AED75.9 million reported for the first half of last year.

The insurer, in which RAK Bank holds a 79% stake, posted AED5 million in profits for the second quarter of this year, due to an increase in underwriting income. This contrasts with a AED9.3-million loss in the corresponding quarter last year. Net underwriting profit reached AED5.8 million in the second quarter, turning around from a loss of AED8.3 million a year earlier.

RAK Insurance reported net profits of AED37.9 million in 2014, 15% higher than the AED32.9 million for 2013, largely due to underwriting gains. This is considered outstanding because last year was the worst on record for UAE insurers as a whole in terms of underwriting performance.

AED1 = US$0.27

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