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Insurance House profit rises 26.7%.

Insurance House net profit grew 26.7 per cent on higher premiums to Dh9.56 million for the financial year ending December 31, 2013.

Total comprehensive profit for the 12 months was Dh14.38 million, which is more than double the total comprehensive profit of Dh6.79 million registered during the previous reporting period.

Commenting on the results of the company for the second full year of operations, Mohammed Alqubaisi, chairman of Insurance House said: "It reaffirms our belief that product innovation and superior customer service are the key ingredients of profitable future growth."

Gross premiums written, or GPW, during the 12 month period ending December 31, 2013 totaled Dh99.13 million, which is 26.5 per cent year-on-year. Underwriting profit from core insurance activities was complemented by robust and sustainable income generated from the well diversified proprietary investment portfolio. For the 12 months, income from investing activities amounted to Dh18.98 million compared to Dh13.59 million for the previous reporting period, on an annualised basis.

"Since inception, IH's Investment Strategy continues to be well thought out, clearly documented and professionally managed," Alqubaisi stated. Total Assets as of December 31, 2013 doubled to Dh254.61 million as of April 11, 2011, being the date on which the insurance provider commenced operations. During the year, total shareholders' Equity strengthened to Dh140.27 million as of December 31, 2013, compared to Dh126.68 million as of December 31, 2012. The company maintains a conservative approach to liquidity management. Cash and cash equivalents as at December 31, 2013 stood at Dh24.94 million compared to Dh17.21 million as at the end of the previous reporting period.

Bearing in mind the need to invest for accelerated growth in the near term, the Board has not recommended any dividend payment. In 2013, the company obtained necessary regulatory approvals to undertake a share buy-back programme. The company maintains that the share buyback initiative is in the best interests of its shareholders and is intended to enhance shareholders value.

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Publication:Khaleej Times (Dubai, United Arab Emirates)
Article Type:Financial report
Date:Jan 22, 2014
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