- Impact of Coronavirus pandemic on insurance sector remains difficult to determine
- Insurance sector is the least affected compared to retail and banking sectors
- 2019 was a fruitful year for Warba Insurance as it crossed a critical stage in its history
- Company’s investment policy focuses on safe and stable investments and high profitability
Al-Sabej
- We aim to transform into a more dynamic national insurer striving for providing innovative insurance products with sustainable profitability
- We have invested significantly in our human and technological capital
Warba Insurance Chairman, Anwar Jawad Bukhamseen, said that the world is living in exceptional times amidst the Coronavirus pandemic, adding that the extent of the impact of the pandemic on the insurance sector is still difficult to determine as its extent and consequences on the sector in general are still unknown. He affirmed that the insurance sector remains less affected to date in comparison to the banking and retail sectors which were more affected by the health crisis.
Bukhamseen added during the Company’s Annual General Meeting (AGM) which was held with a 76.45% quorum, that Warba Insurance maintained its position and reaffirmed that it has indeed earned the trust of its shareholders and customers. That trust is renewed day after day as our Company develops and evolves its operational approach to remain at pace with modern advancements and fast developments, and especially to enable it from weathering through difficult economic conditions and business environments in which traditional operations have no place, and rather innovative solutions that remain true to the Company’s guiding values and principles prevail.
Bukhamseen said that the Company adopted a new investment approach in which it focuses on safe investments with moderate risks and high, stable periodic returns and profitability. The Company also continued to focus on exiting high risk investments for the sixth year in a row. By the end of the year, the profitability and returns from investments reached 60%. The Company has also been successful for the past twelve years in maintaining the highest standards of quality through its commitment to international standards of quality management known as the
ISO 9001:2015 which is accredited by one of the leading quality management firms based in the United Kingdom.
He added that Warba Insurance also continued to enhance its informational technology infrastructure and renewed its certificate of international standards in information security, the ISO 27001, for the fifth year in a row, confirming once again the quality and effectiveness of these tools and the precautionary measures undertaken by the Company. He explained that the Company’s developments in 2019 confirm its full commitment to its strategies, policies and procedures, and have therefore had a positive impact on its overall performance and the performance of investments and operations in particular, as well as contributed to supporting its business lines with the latest technologies to help the Company grow to its objectives.
Bukhamseen reiterated that the year 2019 was a positive and fruitful year as Warba Insurance successfully crossed a delicate phase in its history in which it achieved the objectives of its vision as promised in the Warba Vision for 2021. He said: “We’ve already seen a fundamental transformation in our Company’s performance on every level, starting from the successful restructuring to the development and modernization of internal operations and the work approach, and the full compliance to the road map that was developed to achieve our strategic goals on scientific grounds and in accordance with the best global practices thanks to experienced professionals that are turning these strategies into a success.”
Bukhamseen highlighted that as part of the New Kuwait Vision for 2035, Warba Insurance adopted in its strategies a number of the pillars identified in the Vision and how it contributes effectively to achieving that Vision to ultimately enhance the position of the State of Kuwait as one of the leading regional and global economies.
As for the Company’s highlight results for 2019, Bukhamseen said that shareholders’ equity of the parent company increased by 6.1%, to KD 38.1 million in 2019, and net profit increased by 49.8% to KD 1.1 million in 2019, in comparison to a net profit of KD 781.5 thousand in 2018. Total written premiums increased by 3.9% to KD 29.6 million in 2019 in comparison to KD 28.5 million in 2018. Net written premiums increased by 5.9% to KD 15.1 million in 2019, in comparison to KD 14.2 million in 2018. Net earned premiums increased by 3.1% to KD 14.7 million in 2019, in comparison to KD 14.2 million in 2018. Net investment returns increased by 60.4% to KD 1.9 million in 2019, in comparison to KD 1.2 million in 2018, while total assets increased by 10.5% to KD 119.1 million in 2019, in comparison to KD 107.8 million in 2018. These financial earnings reflect the effectiveness of our present operational strategies and methodologies in supporting our recovery as per the reform policies that we have implemented. We are today reaping the fruits of the year, reaffirming that We are on the right path to ensure our continuity towards excellence, not only locally, but as well as regionally and internationally.
Bukhamseen praised the efficiency of every employee in the Company, especially the underwriting and sales team which had a significant role in maintaining the Company’s balance during the implementation of its strategic transformation plan.
On his part, Warba Insurance Chief Executive Officer, Anwar Fozan Al-Sabej, said Warba Insurance has been going through a transformational phase as part of the Company’s “Warba Vision 2021” initiative that was launched back in 2016. “Warba Vision 2021” is mainly aimed to transform the organization into a more dynamic national insurer striving for providing innovative insurance products with sustainable profitability.
He added that the Company has invested significantly in our human and technological capital as part of its commitment to operate within the highest and most-advanced standards. The Company also improved internal processes and systems so as to enhance corporate governance, risk management and cost efficiency.
He highlighted that Warba Insurance has also reviewed and updated its underwriting policies and procedures in order to reflect changes in the operations, improved controls and streamlined processes. The financial policies and procedures for the Company was revamped and this should improve the operational efficiency.
Shareholders approved the agenda of the AGM which included distribution of 7.5% in cash dividends and 2.5% in bonus shares of the issued and paid up capital by issuing 4,319,718.5 new shares distributed as bonus for the year ended December 31, 2019.
