Fidelity United (formerly known as United Insurance Company) has recently successfully completed its AED60m ($16.3m) rights issue, which is the second injection of funds in the company since 2017 and is aimed at accelerating the company’s sustainable and long-term profitable growth.
There are two significant elements to this latest round of capital increase for Fidelity United, the company said in a statement. Firstly, the injection was mainly required in compliance with the solvency requirements of the central bank. Secondly, this injection demonstrates the trust of the company’s shareholders in the board of directors and the executive team to deliver sustainable growth.
Fidelity United CEO Bilal Adhami said that the capital injection sends a strong message to the market that the company is growth-focused and ready to compete.
Mr Adhami shared his aspirations for the company and said, “I joined the company in 2018 with a clear mandate to inject new energy and direction into the organisation. Over the years, the company has experienced some difficult challenges, especially pre-2018, but thanks to the capital injection of AED100m in 2017, we were able to stabilise our operations significantly. As at 4Q2021, we were ranked 16th in respect of gross premiums.
“Considering 2018 was our first year as a new company, we have not only grown in terms of the top line but have also started posting profits since 1Q2019.”
He said, “This is just the beginning. Despite the competitive market in the UAE, where the number of insurance players as compared to the population would be probably one of the highest in the world, we will still continue to develop our brand to compete with the top players. We will not be in the race of just growing the top line. Whatever line or segment we will grow, we will ensure that it generates returns for shareholders.”
Following the capital injection, Mr Adhami is also optimistic of better results in 2022 for Fidelity United. The insurer’s GWP and net profit grew by 8.8% and 121.9% to AED383.8m and AED8m, respectively, according to its preliminary financial results for the year 2021. M