Abu Dhabi-based Insurance House (IH) has announced its accumulated losses as of the end of the second quarter of the year and the measures taken to deal with them, according to a statement lodged by the company with the Abu Dhabi Securities Exchange.
Accumulated losses as of 30 June 2025 stood at AED138,350,727 ($37.7m), amounting to 116.5% of the company’s capital, said the statement. The company’s detailed analysis of accumulated losses said that the main reasons leading to these losses and their history include:
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The motor business, developed in 2022 and 1H2023, has been a key contributor to the IH’s losses in the past two years. This was driven by the aggressive market price competition, high acquisition costs, poor reporting and claim management practices.
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Financial reporting, control issues and accounting errors related to the period between 2020 and 2022 led to the late realisation of losses and a delayed management response.
Recovery plan
The statement highlighted measures the company has taken to address the accumulated losses, which include a detailed recovery plan consisting of the following measures:
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Raising fresh capital to restore the solvency status set by the Central Bank and improve liquidity
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Developing new strategies for motor and health insurance businesses to reverse the trend at each of the top-line and bottom-line levels
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Improving distribution strategy to grow profitably in all lines of business, including health, personal, and commercial lines
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Cost-efficiency programmes and customer experience strategies are driven by focused transformation projects
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Ongoing improvement of internal policies and procedures, and
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Embedding a culture of engagement and high performance.
The recovery plan, certified by an appointed external actuary and the board of directors, and subject to no objection from regulatory authorities, was approved for implementation in the company’s general assembly in July 2023.
The company said in the statement, “We are constantly reviewing progress against the recovery plan recommendations to ensure that agreed action plans are being implemented.”
IH’s accumulated losses amounted to AED140.4m as of 31 December 2024; AED129.3m as of 30 June 2024 and AED 105.4m as of 30 June 2023.