Takaful - UAE: Abu Dhabi National Takaful Co doubles net profit in 6 years
Source: Middle East Insurance Review | Jun 2016
With insurance penetration in the Middle East being among the lowest in the world, and operating in a very competitive and complex environment, Abu Dhabi National Takaful Company follows a successful takaful operating model that has led to a doubling in net profit to AED41.6 million (US$11.3 million) last year from AED21 million for 2010.
The 2015 net profit in 2015 was 18% higher than the AED35.7 million chalked up for 2014.
Underwriting profit increased by 59% to AED35.6 million for 2015, the company said in a statement. A cash dividend of AED16 million for 2015 was approved during the company’s Annual General Meeting.
Mr Khamis Buharoon Al Shamsi, Chairman of the Board of Directors of the takaful operator, said: “Despite the economic implications of lower oil prices on a global level and the competitive environment witnessed at large by the insurance market during 2015, Abu Dhabi National Takaful Company was not only able to achieve a net profit of AED41.6 million, but also received a ratings upgrade from Stable to ‘Positive’ while maintaining its Financial Strength Rating of B++(Good) and Issuer Credit Rating of bbb+ by A.M. Best. This clearly reflects the success of our strategy and our takaful model. It also shows continued profitable growth in our business, backed by professionalism and high competitive standards.”
Mr Osama Abdeen, CEO of the company, said: “We are proud that Abu Dhabi National Takaful Company has been ranked sixth in profitability amongst the listed insurance companies in the UAE for the year 2015. The company was also recognised amongst the best performing UAE insurers having ranked second among listed insurance companies in the UAE as reported by Standards & Poor’s McGraw Hill ‘Rating Direct’ publication in 2015.”
AED1 = US$0.27