Al Khazna Insurance net profit rises 41pc to Dh24.31m

Higher underwriting income from all classes of insurance, coupled with increased investment income, helped Al Khazna Insurance Co achieve a net profit of Dh24.31 million for the first nine months this year, up 41 per cent compared with the corresponding period last year.

Total assets rose by 3.7 per cent to Dh510.7 million, ending September this year compared with Dh492.63 million.

"The results reflect our good performance for this year with growth from all classes of insurance. The trend should continue until this year end and we expect our income to be in the region of Dh150 million," said John Melcon, Al Khazna general manager.

The Earnings Per Share (EPS) climbed 41.2 per cent to Dh6.40 versus Dh4.53 for the period under review.

The company's shares rose sharply to Dh142 as of last week against Dh112 at the start of this year, a gain of 27 per cent.

"In the past, Al Khazna's share price remained relatively unchanged despite the market going up, but now it has risen in line with market growth, reflecting the company's performance," said Melcon.

Expenses increased by 5.1 per cent to Dh10.59 million versus Dh10.07 million.

"The slightly higher expenses are due to the restructuring of the job plan of the company. Our focus now is to increase the base for emiratisation with six per cent of our staff currently being nationals," he said.

Gross premiums underwritten totalled Dh90 million, up 22 per cent, while underwriting income climbed 11.4 per cent to touch Dh17.66 million. Net investment and other income grew 51 per cent to Dh17.24 million compared with Dh11.42 million in last year's period.

Shareholders' equity grew slightly by 1.2 per cent to reach Dh450.89 million.

"The company's retention is 27.4 per cent net of total income.

"Today, the company is a leaner and meaner organisation and the whole operation is on track despite the intense competition in the insurance market with so many players," said Melcon.

The company is taking on more professionals to have greater skills on board, especially for underwriting and marketing.