Watania International Holding (WIH) has reported a net profit of Dh7.9 million in the first half of 2024, compared to a loss of Dh3.9 million during the same period last year. This positive turnaround comes despite the impact of unprecedented rains that occurred on April 16, which led to major increases in claims for WIH and other industry players, particularly in the motor and property lines. However, the company was able to absorb most of the impact of these claims, thanks to strong performances in other Takaful business lines and a robust risk mitigation framework.
Dr Ali Saeed Bin Harmal Aldhaheri, chairman of WIH, described the April rains event as a watershed moment for the insurance industry, but noted that the company managed to maintain overall profitability due to the stronger-than-budgeted performance of other Takaful business lines. In 2020, Dar Al Takaful acquired Noor Takaful, and in July 2022, National Takaful Company merged with Dar Al Takaful to form one of the largest Takaful entities in the UAE. The holding company was renamed Watania International Holding in March 2023 and shifted its focus to Sharia-compliant investments in the Takaful and Islamic finance sectors.
Despite a drop in Takaful revenues to Dh389 million in the first half of 2024, down nearly 15% from the same period last year, operational profits for WIH remained on track. Gautam Datta, CEO of WIH, highlighted the ongoing improvements in financial and operational performance that have strengthened the company’s balance sheet. He mentioned that the implementation of sustainable operational and underwriting improvements enabled WIH to support customers following the April heavy rains, with 100% of claims processed within 50% of the usual timeframe and zero motor claims rejected at that time.
Datta emphasized that despite the challenges faced by the market and sector, WIH’s net profit for the first half of the year continued to grow, driven by higher underwriting earnings across various Takaful business lines. He expressed optimism about the outlook for the rest of the financial year, citing the continued improvements in financial and operational performance, as well as a more stable balance sheet. WIH’s ability to navigate the impact of the extreme weather event and maintain profitability reflects its resilience and commitment to providing quality Takaful services to its customers.
In conclusion, WIH’s strong performance in the first half of 2024, despite facing challenges such as unprecedented rains and increased claims, demonstrates its resilience and sound business strategies. The company’s focus on sustainable operational and underwriting practices, coupled with its robust risk mitigation framework, has enabled it to weather the storm and maintain profitability. With a positive outlook for the remainder of the financial year, WIH is poised to continue its growth and expansion in the Takaful and Islamic finance sectors. Customers can expect continued support and reliable services from WIH, as the company remains committed to delivering value and excellence in the insurance industry.
