UAE: DAT looks to return to profitability in FY2023
Source: Middle East Insurance Review | Jul 2023
Dar Al Takaful (DAT) reported last month its interim, unaudited, consolidated financial results for 1Q2023 which showed net loss of AED2.8m ($762,320), indicating successful performance turnaround with the company back on path to profitability following corrective measures taken since the merger.
Takaful revenue increased by 52% y-o-y because of the steady performance improvements and high retention in the motor, technical and life product lines which was offset by lower contribution by the medical product line.
Investment income increase by 106% y-o-y to AED13.5m driven by a larger asset base and improved yield on equities and deposits.
The press release noted that the financial statements for 1Q2023 were prepared and reported in compliance with IFRS17; they were issued within the extended timeframe set by the Central Bank of UAE to allow insurance companies to submit their financial statements for the first quarter of 2023 by 15 June 2023 and that all subsequent financial statements will be prepared and reported in accordance with IFRS17.
DAT chairman Ali Aldhaheri said, “We are pleased to see the solid positive indications of the Company’s performance turnaround during the first quarter. We have made significant progress towards completing the integration and realising the full suite of synergies post our strategic merger. Across our consolidated takaful operations, we continued to leverage the scaled up smart technology platforms, expanded geography, distribution networks and customer base and the diversified services offering to capture a larger share of the takaful market.
“Building on the performance turnaround momentum achieved in the first quarter and the revenue growth opportunities from our consolidated operations, we are confident that we are well positioned to achieve normalised sustainable net profit levels and a return to growth in FY2023 with our focus as always on delivering long-term positive returns to our shareholders.”
DAT CEO Gautam Datta said, “Since the start of the year, we have focused on accelerating a range of strategic and operational initiatives. Following the change of name, business object and structure of the holding company in March, we initiated the development of an ambitious growth strategy to explore further growth opportunities in the insurance sector and create long-term value for all our stakeholders.” M