Takaful Emarat, a Dubai-based Shariah-compliant life and health takaful provider, said its net profits jumped by 47% y-o-y to AED15.0 million (US$4.1 million) in 2016.
Earned contributions increased by 31% to AED493.5 million for 2016 compared to AED377.9 million in 2015 thanks to ongoing distribution channel growth across both the medical and life lines of business.
Total assets for 2016 stood at AED688.1 million, up 57% y-o-y.
The strong growth was driven by the DHA’s roll out of mandatory health insurance in Dubai and the ongoing strict controls of the company’s general and administrative expenses, said the DFM-listed insurer in a press statement.
These initiatives were supported by the ongoing digitisation of the company’s product portfolio, which further enhanced sales, with digital remaining a key element of the company’s growth strategy over the next three-year period.
In support of this distribution strategy, Takaful Emarat launched its online portal in the first half of 2016, and during the second half, it enabled applicants to purchase and issue their mandatory health insurance online from a desktop or the company’s smartphone-enabled website.
In 2016, Takaful Emarat also continued to focus on expanding its distribution channel network with the signing of a joint cooperation agreement with Ajman Bank. This is in addition to Takaful Emarat’s existing distribution agreements with RAK Bank, Emirates Islamic Bank, as well as Wahat Al Zaweya.
Takaful Emarat’s CEO Wael Al-Sharif said: “With the rollout of mandatory health insurance in Dubai, we have grown our customer base significantly with each customer now empowered via our digital strategy to access and manage their policies at any time through our online portal.
“In 2017, we will remain focused on being a customer-centric business as we continue to invest in our digital strategy and the ongoing digitisation of our products and services. We are focused on embracing digital and new insurance technologies to provide an optimal customer service as we remain committed to becoming a new generation of insurer for the region. Our on-going growth is a strong endorsement of our business strategy to date and I look forward to reporting further progress in due course.”