Watania International Holding Sees AED 7.9 Million Net Profit In First Half Of 2024

Watania International Holding PJSC (DFM: WATANIA; ‘WIH’ or the ‘Company’) has announced a net profit of AED 7.9 million for the first half of 2024, ending on 30 June. This marks a significant improvement from a loss of AED 3.9 million in the same period last year.

The combined operating ratio (COR) improved to just under 100%, compared to 107% in the first half of 2023. This improvement was primarily driven by strong performances in the Medical Takaful and group Family (Life) Islamic insurance sectors. Before accounting for one-off claims due to heavy rains, COR had significantly improved to 94%, with underwriting profits reaching AED 9 million.

Dr. Ali Saeed Bin Harmal Aldhaheri, Chairman of WIH, stated: "The unprecedented April rains event which the UAE had not witnessed in more than 75 years was a watershed moment for the insurance industry. Pleasingly, we managed to absorb most of the impacts of the resulting one-off large claims during the first half, without compromising our overall profitability due to the stronger than budgeted performance of other Takaful business lines as well as our robust risk mitigation framework."

Despite challenges in the Motor and Property lines due to April rains, WIH maintained positive operating profit during the first half of the financial year. The company remains cautiously optimistic about continued improvements in financial and operational performance for the rest of the year.

Mr. Gautam Datta, CEO of WIH, commented: "The business turnaround we achieved towards the end of 2023 led to a stronger balance sheet underpinned by ongoing improvements in the financial and operational performance of our Watania Takaful subsidiaries."

The implementation of sustainable operational and underwriting improvements enabled WIH to support customers efficiently after April's heavy rains. Within five weeks, Watania Takaful registered all customer claims, processing most within half the usual timeframe without rejecting any motor claims.

Future Prospects and Growth Strategy

Despite market challenges, WIH's net profit continued to grow in H1 2024 due to higher underwriting earnings across several Takaful business lines. The outlook for the remainder of the financial year remains positive as WIH continues executing key milestones aimed at achieving sustainable growth and profitability.

The company's robust risk mitigation framework and strong performance across various Takaful business lines have been crucial in maintaining overall profitability despite adverse conditions.

The strategic focus on sustainable operational improvements has positioned WIH well for future growth while ensuring better customer support and faster claim processing times.

WIH's commitment to continuous improvement is evident from its ability to handle significant claims efficiently while maintaining a stable balance sheet and positive financial outlook.

With inputs from WAM