UAE: Watania declares third consecutive year of dividends
Source: Middle East Insurance Review | May 2021
National Takaful Company (Watania) has approved a dividend payment of 7.5% to shareholders for 2020. Last year marks the third consecutive year the company has declared dividends, following 6% declared in 2019 and 5% in 2018.
Watania said 2018 was the first year for which the company had declared dividends since its inception in 2011. Watania chairman Dr Ali Saeed bin Harmal Al Dhaheri said in a statement, “The company did well in a market where growth struggled due to the global pandemic compounded by some competitive pricing in all product lines while receivable collections continue to pose serious challenges.
“Despite the difficult conditions faced by the industry, the company recorded 40% growth in its profits driven by its underwriting performance.”
Watania announced a net profit of AED18.4m ($5.01m) in 2020.
He said, “This clearly shows that the ‘back to basics’ strategy adopted in 2016 is bearing fruit for the company and its shareholders. The company will continue to focus on prudent underwriting and tight control on its expenses which would ensure consistent returns are being generated for its shareholders.
“We continue to invest in our various IT platforms and our people for ensuring a smooth and hassle-free customer experience, at the same time increasing our efficiency and productivity.”
Outlook
Commenting on the outlook for the market, Dr Al Dhaheri said, “Our view of the market has shifted dramatically due to the worldwide impact of the coronavirus. We believe that insurance will play a critical role in developing economies like the UAE, providing financial security to their population.”
He also said that the consolidation drive in the insurance industry would gain momentum. M
AED1 = $0.27