NGI to provide bank insurance

DUBAI - National General Insurance (NGI) will become the first insurance company in the UAE to provide bank insurance starting from October-November this year, according to a senior official from the company.

By Jamila Qadir

Published: Mon 25 Aug 2003, 12:16 PM

Last updated: Thu 16 Nov 2023, 3:13 PM

Dr Abdul Zahra Abdullah Ali, general manager NGI, said yesterday that although the bank cover was a difficult field within the industry, the company is all set to write this class of insurance along with individual life insurance, which is also new to the UAE.

Dr Ali was briefing newsmen after the official launch of NGI's first Dubai branch on Shaikh Zayed Road in addition to its Creek-overlooking head office, to cater to the high demand emerging in the Al Quoz and Jebel Ali industrial areas.

He said: "The opening of an office on Shaikh Zayed Road signifies a decisive aspect of our long-term approach to become a household name throughout the UAE and cater to emerging and fast growing market in Al Quoz and Jebel Ali areas. The branch's primary objective is to provide a more effective service to these clients. The office is a full-fledged branch where inquiries on all classes of insurance can be dealt with." The opening of the new office is part of the company's aggressive expansion plans, which also include the opening of a branch in Abu Dhabi in the first quarter of next year and another one in Dubai by mid-2004.

He said NGI had a 25 per cent average growth rate yearly and high profitability of around 30 per cent. During the first six months of this year, the company has recorded a 20 per cent increase in premium income and 33 per cent in profitability compared to the same period of last year.

Overall, the prospects for this year are promising, with the planned growth rate of 20 to 25 per cent, according to the budget, while in terms of profitability, the company is above the budget.

Some 45 per cent of the premium income goes to health insurance, while the rest is general insurance, of which 50 per cent share is motor insurance and the remaining includes fire, marine, joint accident and engineering insurance.

Last year the company almost doubled its retained earnings, which stood at Dh6.1 million against Dh3.5 during the previous year, while earnings per share grew up to Dh1.50 from the previous Dh1.23, and net profit was up to Dh8.9 million compared to Dh6.8 million in 2001.

Emerging from a private company established back in 1980, NGI developed into a public joint stock company in 2001. It underwent a major structural reorganisation in 1996 when Emirates Bank Group, with 40 per cent stake became a major shareholder in the company. Commercial Bank of Dubai is the second major shareholder in NGI, followed by Al Zarouni Group, while the remaining minority of shares belongs to Dubai Investments, Union Properties and others.