Al Dhafra Insurance Q3 profit jumps 138%

01/11/2010 00:00 AST

Abu Dhabi-based Al Dhafra Insurance third quarter profit more than doubled on strong growth in investment income, gross premiums and net underwriting income.

The company's financial statement sent to Abu Dhabi Securities Exchange (ADX) showed that third-quarter net profit jumped 138 per cent or Dh6.7 million to Dh11.6 million compared to the same period last year and expects improvement in the overall investment segment results in the current year.

"We are confident that the year 2010 will be another strong year for the company as far as the technical results are concerned," the statement said.

Net premiums and commission rose to Dh26.7m and Dh4.4m, respectively, an increase of nearly 14 per cent in both the segments.

Minister of Economy and Chairman of the Board of Directors for Insurance Authority Sultan Bin Saeed Al Mansouri said on Saturday that insurance premiums in the UAE market are expected to increase to Dh22 billion this year from Dh20 billion last year.

Al Dhafra's 9-month profit jumped 77.5 per cent to Dh49.76m against Dh28m for the same period last year while earnings per share rose to Dh0.66 against Dh0.37. Net underwriting income during the first nine months rose 22.6 per cent to Dh56m against Dh45.6m while gross premium income jumped to Dh235m from Dh200.4m for the same period last year.

Its assets increased 8.7 per cent to Dh745.88m at the end of September 2010 against Dh685.98m at the end of December 2009.

Third-quarter results boosted company's stocks, jumping nearly 10 per cent to Dh4.74 on Sunday.

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