7 Dubai - Daily News from Dubai to the world

Dubai-based National General Insurance yesterday said it achieved a 26 per cent increase in the gross premium income from Dh290 million in 2007 to Dh365m in 2008. The technical profits also increased by 54 per cent over the same period to reach Dh66m against Dh42m for 2007.

The company’s general meeting also approved a cash dividend of a 10 per cent of the capital, and a 10 per cent bonus share issue for the financial year ended December 31, 2008.

“Our ratio of technical profits to overall premium written at 18 per cent is one of the highest in the market, while it is at 54 per cent to the capital and 240 per cent to the shareholders’ equity. Due to the reduction in the value of financial assets, the company achieved net profits amounting to Dh20m,” said Khalid Jassim Bin Kalban, Chairman of NGI.

“The fourth quarter of 2008 has witnessed several challenges at the international and local levels, affecting most of the world’s economies and hitting the insurance and reinsurance business at large,” Bin Kalban said.

“The most remarkable were the near collapse of the world’s largest insurance company AIG and also the effects could be seen on most of European reinsurance firms. Most local insurance firms couldn’t escape the current global crisis as technical profits and return on investments were badly hit, affecting the net profits and shareholders’ equity in such firms. Our company has not escaped from this crisis, but we managed to achieve good results and remarkable growth in gross premium income and technical profits,” said Bin Kalban.

Abdul Zahra A Ali, the general manager of the company, said the company will maintain the technical results level in 2009 and introduce new products that will help promote its market position. The company is operating in all insurance classes including life, health insurance and all types of general insurances. It operates through seven branches including the head office. The company is about to start marketing its products through Emirates NBD.