UAE: Aman posts improved net profit in 1H to slash accumulated losses
Source: Middle East Insurance Review | Sep 2020
Dubai Islamic Insurance and Reinsurance Company (Aman) has recorded net profit attributable to shareholders of AED8.17m ($2.22m) for the first half of 2020, up from AED7.49m for 1H2019.
The company’s net earned takaful contributions income reached AED47.65m in 1H2020, compared to AED34.33m in the same half of 2019.
Accumulated losses
However, accumulated losses stood as at AED94.98m at 30 June 2020, accounting for 42% of the paid-up capital.
The company said in a detailed analysis that measures have been taken to address the accumulated losses. These include discontinuing loss making subsidiaries; adopting a prudent underwriting strategy; and capital restructuring.
The accumulated losses were due to the negative effect of subsidiaries in previous years as well as reserves or provisions made for a couple of years to comply with regulatory requirements. M