Green Crescent, the Abu Dhabi-based insurer partly owned by Axa of France, narrowed its second-quarter loss as it reduced its health portfolio and grew its life insurance business.
The company lost Dh2.93 million, down from a loss of Dh6.49m in the year-earlier period. Revenue fell 45 per cent to Dh9.54m from Dh17.39m last year.
In a statement to the Abu Dhabi Securities Exchange, Green Crescent said it reduced its health insurance business because of price competition, but preserved its underwriting margin despite declining revenue and gross written premiums.
Green Crescent’s gross written premium in the second quarter declined 44 per cent to Dh11.7m from Dh21m in the year-earlier period, while net premiums fell 53 per cent to Dh7.94m from Dh16.88m a year ago.
With 60 insurers competing for healthcare business in the UAE market, insurers’ earnings have been declining even as the industry’s total gross written premium increased last year. Total written premiums rose 13.5 per cent to Dh33.5 billion last year, according to the Insurance Authority. Many firms, such as Green Crescent, have chosen margins over market share to boost profitability.
“Achieving growth in the health business with profitability is unlikely in the current environment, as the company will continue to follow a conservative underwriting strategy that favours margins over market share in the health line,” said Green Crescent, adding that it expanded its group life and individual life protection business to diversify its revenue streams.
Its investment income plunged 59 per cent to Dh353,000 from Dh852,000 in the year-earlier period.
dalsaadi@thenational.ae
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