UAE: Watania posts 40% jump in net profit for 2019
Source: Middle East Insurance Review | May 2020
National Takaful Company (Watania) has announced a 39% jump in net profit to AED13.1m ($3.6m) for 2019, from AED9.4m in 2018.
Watania chairman Dr Ali Saeed Sultan Bin Harmel Al Dhaheri said in a statement that the company launched and implemented many initiatives in 2019 to boost its overall performance. Most of these initiatives have been focused on enhancing the level of customer service. For the first time, an external agency was appointed to obtain customer feedback and its findings were utilised to improve customer services. A new digital platform was launched that allows one of the fastest quotations and policy issuance systems for motor business in the UAE.
Watania was able to grow without compromising its pricing approach and underwriting margin. The discipline that the company has maintained in delivering in key operations and investments is what distinguishes the performance of the company in 2019 from those of others.
Watania was also among the first in the UAE to subscribe to blockchain technology to manage the motor claims recovery process, reducing processing time and other costs.
In announcing the financial results of the company, Dr Al Dhaheri also said that 2019 was challenging for the economy and the insurance market. There was a growth slowdown and constraints on liquidity. The investment climate has also been uncertain due to global geopolitical conditions.
Despite these difficult circumstances, Watania performed well, and maintained the track record and momentum built over the last three years. Dr Al Dhaheri emphasised that there is further room to grow.
Outlook
Commenting on the outlook of the sector, he said, “Our view of the market has shifted dramatically due to the worldwide impact of COVID-19. The usual challenges of liquidity and managing receivables do not seem as critical as the overall recovery of the global economy.
“The UAE has been at the forefront of taking aggressive steps to control the spread of the virus. However, the shutting down of businesses will have a toll on the economy. Nevertheless, we are confident that once the spread of the virus is brought under control and businesses start to get back to normal, we will be in a good position to seize the advantage.” M