The board of directors of Orient Insurance has proposed the distribution of cash dividends for 2024 amounting to AED400m ($109m), representing 80% of the company's issued share capital of AED500m. In comparison, Orient paid cash dividends of AED300m for 2023.
The proposed dividend payout was made at a board meeting on 5 March, according to statements issued by the insurer. It will have to be approved by shareholders at the company’s Annual General Meeting later.
Orient’s consolidated financial statements show that the group achieved a net profit of AED731.2m for the fiscal year ended 31 December 2024, 15% higher than the AED636.1m in 2023.
Insurance industry
Meanwhile, the directors’ report, also released on 5 March as part of the consolidated financial statements, said that the UAE experienced significant economic growth in 2024, driven primarily by diversification efforts beyond the oil sector. Combined efforts in infrastructure development, strategic investments in artificial intelligence and dynamic real estate construction solidified the UAE's position as a leading economic power. Leveraging this strong growth, Orient achieved remarkable progress in both revenue and profit while simultaneously lowering its operational costs.
Challenges
The year 2024 also experienced unprecedented events, such as the heavy rains and subsequent flooding in April 2024, leading to a surge in motor insurance and property claims. This unexpected natural disaster prompted many to re-evaluate risk models and coverage strategies.
The implementation of a federal corporate income tax (CIT) regime, at a standard tax rate of 9% impacted the net results. Enhanced compliance requirements necessitated the reassessment of business operations to align with the evolving regulatory environment.
Orient’s expansion and overseas performance
The directors’ report said that the Orient group continued to expand into new markets and are set to commence operations in Saudi Arabia in the first quarter of 2025.
The report added, “We are currently engaged in discussions with Australian Prudential Regulatory Authority (APRA) to obtain the necessary approvals for the launch of our takaful operations in Australia. We have received approval from the central bank (of the UAE) to establish a branch in Kuwait and have successfully submitted our initial application to the Kuwait Direct Investment Promotion Authority (KDIPA), making a remarkable milestone in our expansion plan.
“Additionally, our discussions with a major local bank in Egypt to establish a life insurance company have reached an advanced stage.”
“Our journey toward broader geographical expansion remains ongoing, with further growth planned across the GCC and North Africa, strengthening Orient’s global presence.”
2025 outlook
The director’s report said, “2025 presents significant growth opportunities for Orient. The rise in oil production and prices, increased infrastructure investments, UAE’s international trade agreements, and the expansion of the real estate and retail sectors are expected to further strengthen the UAE economy.”
The report added that Orient is well-positioned to capitalise on these opportunities, driving continued growth in both revenue and profit and delivering significant value in enhancing customer satisfaction.
Automation through digitalisation and AI
Having completed its digitalisation programme, Orient is now venturing into AI by incorporating automation into decision-making across underwriting, high-speed documentation, claims management, personalised customer experiences, improved risk assessment, fraud detection, operational efficiency, and customer engagement. These initiatives and investments will elevate customer experience with Orient to an entirely new level, the report said.