Watania International Holding Reports AED 7.9 Million Net Profit in H1 2024 Amidst Challenging Conditions
Watania International Holding PJSC (DFM: WATANIA) has reported a strong net profit of AED 7.9 million for the first half of 2024, showcasing resilience amidst unprecedented challenges.
Summary
Watania International Holding PJSC (WIH) reported a net profit of AED 7.9 million for H1 2024, driven by strong performance in Medical Takaful and Family Islamic insurance. Despite large one-time claims from April rains, the company demonstrated robust fundamentals and an improved combined operating ratio.
Dubai, 13 August 2024: Watania International Holding PJSC (DFM: WATANIA; ‘WIH’ or the ‘Company’), a leading investment holding company in the UAE, has announced a net profit of AED 7.9 million for the first half of 2024, ending 30 June. This marks a significant turnaround from a loss of AED 3.9 million in the same period last year.
The company's combined operating ratio (COR) improved to just under 100%, a notable enhancement from 107% in H1 2023. This improvement was primarily driven by the stellar performance of the Medical Takaful business and group Family (Life) Islamic insurance. Excluding the one-off claims from the unprecedented April rains, the COR had significantly improved to 94%, with underwriting profits recorded at AED 9 million for the period.
Dr. Ali Saeed Bin Harmal Aldhaheri, Chairman of WIH, commented on the results, stating, '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 the challenges posed by the large claims in the Motor and Property lines of business due to the April rains, WIH's operating profit remained positive. This solid performance underscores the strength and resilience of the company's business fundamentals, following the successful execution of its turnaround strategy.
Operationally, WIH launched its inaugural integrated annual and sustainability report for the financial year 2023 under the 'Watania' moniker, reflecting its refreshed branding. The Watania Takaful subsidiaries continued to foster strong strategic partnerships and collaborations with various entities to support road safety and the wellbeing of members and the community.
Looking ahead, WIH remains cautiously optimistic about the remainder of the financial year. The continued improvements in financial and operational performance, along with a more stable balance sheet, provide a solid foundation for future growth.
Investment Recommendation: Based on the strong turnaround in profitability, improved operating ratios, and strategic initiatives, investors are suggested to hold their positions in Watania International Holding PJSC. The company's demonstrated resilience and ongoing improvements indicate a stable outlook, making it a prudent choice for maintaining current investments.
Source
Summary
Watania International Holding (WIH) reported a net profit of AED 7.9 million for the first half of 2024, a significant improvement from a loss of AED 3.9 million in the same period last year. The company's combined operating ratio (COR) improved to just under 100%, driven by strong performance in its Medical Takaful and Family Islamic insurance businesses. Despite large one-time claims due to unprecedented April rains in the UAE, WIH maintained overall profitability. Chairman Dr. Ali Saeed Bin Harmal Aldhaheri attributed the solid performance to the company's robust risk mitigation framework and successful turnaround strategy. WIH also launched its inaugural integrated annual and sustainability report for 2023 and continued to build strategic partnerships to support road safety and community wellbeing.
