Emirates Insurance, a leading UAE based insurer and reinsurer, has announced its half-year results, showing a 53% increase to AED90m ($24.5m).
2Q2019 net profits doubled from AED13m to AED26m; while 1Q net profits rose by 41% from AED45m to AED64m.
GWP grew by 11.5% to AED645m in the first six months of the year compared to the corresponding period last year. The increase in GWP was seen across all branches of business except medical.
The overall loss ratio of the company remains below 50% and the combined ratio just above 80%.
In a statement on the company's interim results, Emirates’ CEO, Jason Light, said, “Despite a cool economy and intensifying competition in the first six months of this year I am pleased that our GWP has grown by 11.5% to AED645m. Our underwriting result improved by 17% [to AED108.9m] and our investment business produced an extraordinary 88% growth [to AED47.7m] over last year. Overall a very strong start to 2019.”
Commenting on investment performance, company management said that a dovish Fed, coupled with strong regional inflows backed by index upgrades, were key drivers of the stronger investment results across fixed income and equity assets. EIC's tactical allocations and commitment to long-term strategic targets, despite headwinds in the short-term, were critical in capitalising on anticipated macro developments and, in turn, generating alpha.
One of the pioneering insurance companies in the region, Emirates Insurance was incorporated in 1982. It is listed on the Abu Dhabi Securities Exchange. EIC has an authorised and issued share capital of AED150m, with assets in excess of AED2.4bn. 12% of the shares in the company are held by ADIC, the domestic sovereign wealth fund of the Abu Dhabi government.
EIC is primarily involved in corporate lines of business in the UAE and reinsurance business in Afro-Asia.