Dubai: The Chairman of Islamic insurer Abu Dhabi National Takaful Co. (Takaful) resigned on Tuesday, according to a statement on the Abu Dhabi bourse.

No explanation was giving for Khadem Al Qubaisi’s resignation. He has been replaced by Vice-Chairman Khamis Buharoon. Nasser M. Al Murr Al Za’abi has filled the vacated board seat, according to a separate statement on the bourse.

Last month, Takaful reported a nearly 25 per cent drop in second quarter net profits. The company made Dh15 million in net profits for the three months ending June 30 compared to Dh19.9 million in the same period last year.

Takaful could not be reached for comment on Tuesday, however, said last month the fall in net profits was largely due to the increase in net claims incurred in the motor line of business.

“This has resulted in an adverse impact on the profitability of our motor portfolio and also attributable to the prevailing intense competition on prices in respect of all lines of business,” stated Osama Abdeen, chief executive officer.

Al Qubaisi was reported to have said that Takaful is in the process of obtaining an international financial rating.