Green Crescent Insurance Company (PJSC), the leading group health and life insurance Company in the UAE, has announced that it will be holding an Extraordinary General Meeting (EGM) on November 13th to propose a well-defined growth plan to its shareholders following the positive outcomes it has achieved as a result of adopting a new operating strategy. The company has also recently obtained the awaited approval from the authorities to propose a capital restructuring program to its shareholders, aiming to bring the balance sheet in line with the regulatory framework.
Green Crescent´s new strategy, which was endorsed and supported by the Board of Directors, involved a complete restructure to the company´s internal functions and operations as well as its underwriting strategy. In pursuit of this, the capital restructure will provide the company with the ability to react rapidly to market opportunities or to any potential changes in the regulatory regime.
Over the first two quarters of 2012, Green Crescent has reported significant improvement in its financial results, including strong growth in underwriting profits, which improved to AED 2.8 million for the second quarter (compared to a loss of AED 7.7 million for the same period in 2011), one of the highest financial improvements in the insurance market in Q2. Over the same time-frame, Green Crescent has reduced operating expenses by 31% versus the same period last year and has produced a significant improvement of net results, with losses trimmed from AED 31.2 million in the first half of 2011 to AED 13.9 million in the first half of 2012.
Commenting on the announcement, Dr. Hazem Al Madi, CEO of Green Crescent Insurance Company said "We have successfully established, with the leadership and support of the Board of Directors, the base required to steer the company towards profitability and it is now the right time to restructure our balance sheet to reflect the growing strength of our company." When queried on the likely trend for financial result going forward, Dr. Al Madi indicated that, building on the dramatic improvements of the past 12 months, he anticipates "the trend in technical and bottom line results is very likely to continue through 2012"
"The proposed plan will strengthen our balance sheet, gives us greater operating and financing flexibility, and increases our ability to take advantage of opportunities in our core businesses. The Board and Management are confident that the restructuring will provide customers with an accurate view of the strength of the company and will provide investors and shareholders with a more realistic picture of the performance of the firm going forward." added Dr. Al Madi
AXA Green Crescent Insurance Company (AXA Green Crescent) is part of AXA Group, a worldwide leader in insurance and asset management. Headquartered in Abu Dhabi, AXA Green Crescent has been created post a strategic alliance between AXA Group, Kanoo Group and Green Crescent Insurance Company (GCIC). GCIC was founded in 2008 as a public joint stock company to provide tailor-made health and life insurance solutions to groups and corporate clients. AXA Green Crescent now aims to offer life protection and savings solutions to customers in the UAE, making AXA Gulf a one stop shop for all insurance needs.
AXA in the Gulf