UAE: Dar Al Takaful announces 1H2022 results
Source: Middle East Insurance Review | Sep 2022
Dar Al Takaful (DAT) reported its interim financial results for the first half of 2022 which showed that gross written contributions went down marginally by 4.4% to AED401.4m ($109.3M) in 1H2022 from AED420m generated in the same period of the past year, with aggressive deleveraging and de-risking measures implemented, DAT announced last month.
The company reported net loss of AED10.3m in 1H2022 due to impacts of COVID-19, pricing pressures, investment losses in 2Q2022 and one-off merger related expenses.
DAT’s strong overall financial fundamentals and resilience positioned the company to capitalise on growth opportunities, particularly pursuing and completing the merger with Watania at the end of the first half. As such, this is the last quarter for DAT’s independent financial reporting with the combined listed entity on DFM set to report its consolidated financials starting from the third quarter this year.
DAT is already seeing the positive outcomes of these turnaround measures with the family and individual family segments delivering robust results, and the medical insurance segment growing steadily by 9% while investment income increased to AED5.6m during the first half of 2022.
DAT chairman Ali Saeed Bin Harmal Aldhaheri said, “While we continued to address the lingering impacts of the COVID-19 pandemic and the significant headwinds resulting from rising inflation and interest rates globally, we have successfully implemented proactive measures and precautions to rebalance our portfolio and limit outsized exposure. Through the merger between DAT and Watania, the new combined entity DAT is well positioned to benefit from the potential realisation of significant cost and revenue synergies, as well as reduced operating expenses and better IT platforms. In addition, risk will be diversified across a larger policyholder base and product portfolio, thereby reducing exposure to single events.”
He added that DAT’s large scale in a highly fragmented market will help the company better manage risk, expand geographic reach, as well as generate sustainable returns and create value for shareholders andstakeholders. M