Fidelity United announces AED 60 million Capital Injection to accelerate a sustainable and long term profitable growth
Two rounds of injection in the last four years is a clear indication of the confidence and trust of shareholders in the company’s operations and vision
Fidelity United (formerly known as United Insurance Company) is one of the oldest companies in the UAE that also celebrated its 45th anniversary in 2021. Recently, the insurance firm successfully completed its AED60 million rights issue, which is the second injection of funds in the company since 2017.
There are two significant elements to this capital injection for Fidelity United. Firstly, the injection was mainly required in compliance with the Solvency Requirement of Central Bank. Secondly, this injection demonstrates the trust of the company’s shareholders over the Board and the Executive Team to deliver a sustainable and long term profitable growth.
This, according to the Fidelity United CEO, sends a strong message to the market that they are growth-focused and are ready to compete.
Bilal Adhami, CEO, Fidelity United, shares his insights on his aspiration of the company, “I joined the company in 2018 with a clear mandate to inject new energy and direction into the organization. Over the years, the company has experienced some difficult challenges, especially pre-2018 but thanks to the capital injection of AED100m in 2017, we were able to stabilize our operations significantly. As at Q4 2021, we were ranked 16th in respect of Gross Premium. Considering 2018 was our first year as a new company, we have not only grown in terms of top line but have started posting profits since Q1 of 2019. It is rare to find a company with the negative equity four years ago that has turned around its fortunes and is now in the position that we are in now. his is just the beginning. Despite the competitive market in the UAE, where the number of insurance players as compared to the population would be probably one of the highest in the world, we will still continue to develop our brand to compete with the top players.
We will not be in the race of just growing top line. Whatever line or segment we will grow, we will ensure that it generates return to the shareholders.
Recognizing the achievements, Fidelity United’s CEO attributed the milestone to the teamwork within the organization, shareholders and the unwavering support of the Board Members. The company also appreciates the continuous support from the Central Bank, previously called Insurance Authority, for their guidance throughout the journey. Lastly, he commends the organization’s employees. He strongly believes that without their dedication, loyalty, and sincere effort, this success would not have been possible. Sharing his thoughts on the changes he would like to see in the insurance industry in UAE, Bilal Adhami noted that he would like to see more consolidations within the industry.
“There is a large number of insurance players in the market and this is certainly not healthy for sustainable growth of the industry as a whole.
