Orient has achieved GWP of AED3.01bn in 9M2019 compared to AED2.95bn in the corresponding period in 2018. It recorded a net profit of AED354.8m in 9M2019 compared to AED347m in the same period in the preceding year – making it the leading insurer in the UAE. Its investments are in excess of AED4bn, while the total equity crossed the AED3bn mark.
Orient Group president Omer Elamin made this announcement during a dinner the company hosted for its business partners and affiliates in end-November. “We look forward to 2020 and are optimistic that it is going to be a great year,” he said.
Earlier in the year, AM Best upgraded the long-term issuer credit rating of Orient to ‘a+’ from ‘a’ and affirmed its financial strength rating of ‘A’. Concurrently, the rating agency assigned a financial strength rating of ‘A’ and a long-term issuer credit rating of ‘a+’ to Orient’s unit Arab Orient Takaful, making it “the only company in the Egyptian market and Africa to have this kind of rating”, said Mr Elamin.
Orient is gearing up for enhanced business activities leading up to Expo 2020 as it has been selected to provide protection for the expo site, operations and pavilions. As the official insurance provider, Orient will create insurance solutions to meet the event’s unique requirements, including property insurance and liability coverage. It has also been selected as the insurer for Emirates Airlines.
Despite the overall positive year the company has witnessed, Mr Elamin noted some challenges plaguing the insurance industry in the region. He cited the withdrawal of capacity from the DIFC as a challenge as it has led to difficulty in placing some of the risks. On the flip side, this has resulted in increasing rates, especially for bigger risks, he said.
Competition in the region has intensified, he said, adding that “it is interesting to see that with the international market hardening, our local market is softening in certain areas, especially in motor and medical, where these risks are written on excess of loss basis… and rates are going back to what they were in 2016 before the intervention of the regulator”.
Mr Elamin also brought up the issue of premium collection – which he said is becoming a big challenge, and called on leading companies to bring this issue to the attention of the insurance authority.
The dinner was held at the Jumeirah Beach Hotel and attended by some 1,000 guests. M