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Al Buhaira records 41% drop in FY13 profit

Al Buhaira records 41% drop in FY13 profit
ABNIC
ABNIC
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Sharjah-based Al Buhaira National Insurance CO. (Abnic) net profit dropped 41 per cent to Dh10 million in 2013 compared to Dh17 million in the previous year, blaming competition and new market entrants.

The company said in a statement to Abu Dhabi bourse that it recorded Dh520 million premium revenues for the year ended on December 31, 2013 compared to Dh559 million in the previous year, a drop of 7 per cent.

Its underwriting profit more than halved to Dh22 million in 2013 from Dh49 million in 2012. Total assets stood at Dh1.95 billion compared to Dh1.83 billion while shareholders equity reached Dh608 million from Dh609 million.

Sharjah-headquarter company said it posted acceptable results during 2013 in spite of severe price competition among insurance companies and in particular some new entrants, in additional to unjustified increases in medical fees that continued to undermine medical results on one half and a remarkable increase in spare parts and labour cost for motor insurance which resulted in slimming profit margins in 2013.

“Abnic is continuously improving its core competencies and enhancing its risk management controls in compliance with the principals and practices of corporate governance in order to protect the rights of its shareholders and policyholders.