Abu Dhabi: Emirates Insurance Co. (EIC) yesterday reported a 45 per cent fall in annual profit to Dh63 million due to the continued decline in investment income.
In the last two years, the company relied on its investments in assets including real estate, equities and hedge funds for about two-thirds of its profits, earnings statements posted on the Abu Dhabi Securities Exchange showed.
In 2009, investment income reached Dh15 million, or about 24 per cent of profit.
"The investment portfolio continued its recovery during the first nine months of the year," EIC Chairman Abdullah Mazrui said in a statement yesterday.
"But the news of Dubai's financial difficulties curtailed the recovery during the last quarter of the year resulting in a reduction of the investment portfolio and the total assets of the company."
The company's revenues reached Dh643 million last year, a 3 per cent drop from 2008. Abu Dhabi account ed for about two-thirds of EIC's business.
Operationally, EIC reported an 8 per cent increase in underwriting profit to Dh55 million despite the decrease in income due to the adoption of "stricter underwriting guidelines", according to the company's statement.
