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National General Insurance will be the latest to get a listing on Dubai Financial Market (DFM), with trading expected to commence by the first week of April. Currently, the Dubai bourse lists 12 scrips.
NGI has a shareholder base of 225, with seven institutional investors accounting for around 80 per cent of the equity. Emirates Bank Group is the single largest shareholder with 40 per cent, with the others being Dubai Investments, Union Properties, Commercial Bank of Dubai, Mohammed bin Haider Group and Al Zarouni Group.
The Dubai-based insurer completed an initial public offering (IPO) in the first quarter of 2001, which raised the capital base to Dh60 million from Dh45 million.
"We have already taken the steps necessary for listing, including approval from DFM and the concerned ministry. It would take us until the end of the month to finalise all the processes, and should start trading by early April," said Khalid bin Kalban, NGI chairman.
"It is a very good investment with tremendous potential for growth. The company has the support of major investors and is financially sound."
NGI has a current book value per share of Dh11.42 compared to Dh10.73 in its 2000 financials.
"NGI has a five year plan by the end of which the premium income should not be less than Dh150 million. To achieve that, we are in line for growth of 20-25 per cent annually," added Kalban.
For 2001, the insurer has reported a net profit of Dh6.85 million against Dh1.76 million the year earlier. Gross premium shot up to Dh43.54 million from Dh37.7 million, with the medical line being the prime mover accounting for Dh18.15 million.
Motor followed with Dh11 million, in line with NGI's policy to keep its contribution at 25 per cent of overall premium income.
At its annual general meeting yesterday, NGI has announced a cash dividend of 5 per cent totalling Dh3 million. Under-writing profit was Dh3.6 million and investment income totalled Dh4.32 million.
Earnings per share as of end 2001 was Dh1.23 compared to Dh0.39 in 2000.
For 2002, NGI will expand its portfolio with the addition of life assurance. Approvals have already been received and the final procedural work is being done for the launch to take place in the next few weeks, said Dr. Abdul Zahra Abdullah Ali, general manager. "This will be a major growth area for NGI in coming years."
For 2002, an improvement in prevailing interest rates before the year is out, and better valuations of its real estate interests are expected to contribute to higher returns from investments.
Reported on: www.gulf-news.com
Reported on: 05.03.2002
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