Watania Net Profit grows by 136%

The National Takaful Company (Watania) has announced that the company’s net profit showed growth by 136 percent from AED7 million in 2019 to AED16.6 million in 2020. Dr. Ali Saeed Bin Harmal Al Dhaheri, Chairman of the Board of National Takaful Company has attributed the growth to the company’s strategy driven by data.

“The lockdown imposed on account of the pandemic saw significant reduction in road accidents and general illnesses. This had a positive impact on Company’s Motor and Medical insurance portfolio. The overall loss ratio came down to 54 percent compared to 62 percent last year for the same period. The operating income increased by 271 percent from AED 3.4million to AED 12.6 million. The investment income showed a slight increase of eight percent at AED3.9 million from AED3.6 million in H12019,” stated a bourse filing.

The company incorporated special discount in motor and medical premium. This helped many of the customers who were facing economic challenges to keep their policies intact. In keeping with the guidelines set by the regulator, 50 percent discount was given on motor policies for the frontline workers fighting the pandemic. Moreover, there has been control over expense ratio, by ensuring all spending either contribute to direct revenue or increase productivity.

On the other hand, Al Dhaheri assured that the Insurance Authority can implement the proposals made by the Emirates Insurance Association to provide relief to the insurance sector and maintain its financial viability in order to overcome the effects of the COVID-19 crisis and resume its activities in a better way. The support from Insurance Authority to consolidation (M&A) initiatives will help in building a strong insurance sector that can withstand the shock of such future pandemics and contribute to the financial stability of the economy.