UAE: Watania sees 136% climb in 1H2020 net profit
Source: Middle East Insurance Review | Sep 2020
National Takaful Company (Watania) has more than doubled its net profit to AED16.6m ($4.52m) for the first half of this year compared to AED7m for the corresponding period last year.
The growth rate was 136%, declared Watania chairman Dr Ali Saeed Bin Harmal Al Dhaheri.
The lockdown imposed due to the COVID-19 pandemic saw significant reduction in road accidents and general illnesses. This had a positive impact on the company’s motor and medical insurance portfolio. The overall loss ratio fell to 54% for 1H2020 compared to 62% for the corresponding period last year. Operating income increased by 271% from AED3.4m to AED12.6m. Investment income showed a slight increase of 8% to AED3.9m from AED3.6m in 1H2019.
In spite of COVID-19, Watania was able to deliver on all the critical items when it mattered the most. The measures it took resulted in growth of business during a period when there was contraction all around.
The company granted a special discount in motor and medical premiums. This helped many of the customers who were facing economic challenges to keep their policies intact. A 50% discount was given on motor policies for frontline workers fighting the pandemic, acknowledging their contribution. Moreover, there has been control over the expense ratio, by ensuring all spending either contributes to direct revenue or increases productivity.
Strategy
Dr Al Dhaheri said the company’s strategy is driven by data. He also said that Watania’s business strategy is built on three basic pillars – expertise in medical and motor business to deliver the right solutions at a competitive price to customers, prompt service with problem-free claims settlement and a committed team that is passionate about enhancing knowledge and skills to provide service that exceeds the expectations of customers. M