National Takaful Company (Watania) Reports Dh2.7 Million Profit in Second Quarter

Press release
Published August 13th, 2017 - 09:15 GMT
Ali Bin Harmel Al Daheri, Watania Chairman of the Board of Directors
Ali Bin Harmel Al Daheri, Watania Chairman of the Board of Directors

Profit at National Takaful Company (Watania) showed a growth rate by 272 per cent to Dh2.7 million in the second quarter compared to a deficit of Dh1.5 million in the same period last year. Takaful operations achieved a surplus of Dh44,000 compared to a deficit of around Dh7.3 million, the company said Ali Bin Harmel Al Daheri, Chairman of the Board of Directors, said that in the year 2016, the company’s performance received support and reinforcement. Watania stopped some of its operations that caused it to incur loss in some sectors, and also developed a clear strategy to identify and develop the profitable sectors.

Al Daheri pointed out that it is necessary to measure the Company’s performance in 2017 in consistency with what has been done in previous years since the company registered losses until 2015. In 2016, a major restructuring process was implemented in the company, which had a positive impact and enabled it to finish 2016 with some profits. Likewise, the company’s performance gained extra momentum in 2017, which led to the achievement of better than expected results during the second quarter.

He added that the company is now embarking towards a profitable phase by the help of using important technological aspects, he expressed that the company have surpassed the second quarter 2017 forecast.

While answering a question on future performance, he said the condition of the market can be challenging for every insurance provider ahead but despite this, he was confident to meet to set the budget. There are some new products in pipeline, which would be available in future in right time at right price; the company is also considering some new channels and expansion in new geographical areas.

“We controlled the expenses, claims were managed properly. Watania will be one of the top five Takaful companies in three to five years’ time in terms of profitability and shareholder value,” Al Daheri said.

On the future of takaful sector in the UAE, he said: “Takaful industry in UAE is going through challenging times. New regulations related to investments and solvency is putting strains forcing some companies to focus on operational profitability. The need to improve performance of this sector is evident from market data.”

He added: “Takaful companies have to focus on improving their performance. I believe that if we are able to develop the operations then our future is bright. This will show better value for our shareholders.

Background Information

National Takaful Company

NTIC is a National join stock company established in 2003.
NTIC's Paid up capital is KD10,000,000 Millions.
NTIC was established by the leading business groups in both Arab & Kuwaiti market.
The company's general policy is drawn and managed by Kuwaiti board of directors in addition to the elite department managers and employees with wide experience and unique professionalism.

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