Abu Dhabi – Mubasher: The accumulated losses of Insurance House (IH) amounted to AED 105.43 million during the second quarter (Q2) of 2023, according to a bourse disclosure.
The incurred accumulated losses represent 88.70% of the company’s capital, which is also higher than the AED 84.34 million losses recorded in Q1-23.
During the first half (H1) of 2023, Insurance House registered a total comprehensive loss of AED 25.64 million, an annual hike from AED 4.72 million.
Meanwhile, the revenues increased by 13.82% to AED 128.06 million in H1-23 from AED 112.52 million in H1-22.
Issam Mouslimani, CEO of Insurance House, commented: "Cut-throat competition amongst insurers led to very low rates of insurance premium that were not commensurate with the underlying risk being underwritten."
Mouslimani highlighted that the new management took the necessary corrective actions to restore the health of this portfolio, expecting improved results in the coming period.
The CEO noted: "The unhealthy price competition amongst insurance companies is a temporary setback to our growth momentum in the near term.”
“Yet, remained optimistic about the future, emphasising the capabilities of the new senior management team at IH which has already started executing a meticulously planned, comprehensive Recovery Plan,” he added.