Dubai Islamic Insurance and Re Insurance Company (Aman) has taken cost-cutting measures to address accumulated losses that have reached more than half of the capital.

As of the end of June 2022, accumulated losses stood at more than AED133 million ($36.2 million), accounting for 59% of the capital, the takaful insurance provider said in an analysis posted on the Dubai Financial Market (DFM) on Monday.

Losses reached more than AED5 million for the second quarter of the year and AED9.6 million for the first half of 2022.

Higher takaful contributions

From January to June, the company recorded more than AED58 million in net earned takaful contributions, up from AED48.4 million a year earlier.

The insurer said it has implemented measures to address the losses. These include cutting general and administrative expenses, increasing sales and concentrating on operational efficiencies. It has also accelerated its digital transformation strategy.

However, the company is positive that finances will improve, as the local economy continues to recover from the impact of the COVID-19 pandemic.

"We shall continue to focus on improving the profitability of our core business, developing new products and solutions... and creating sustainable value for our shareholders, policyholders and business partners," the company said.

(Writing by Cleofe Maceda; editing by Seban Scaria)