Watania International Holding PJSC (DFM: WATANIA), a prominent investment holding company in the United Arab Emirates, has released its financial results for the first half of 2024. The company, formerly known as Dar Al Takaful PJSC, has demonstrated robust growth and a solid performance, reaffirming its position as a leading player in the Takaful sector.

Financial Highlights

For the period ending June 30, 2024, Watania International Holding PJSC reported a Takaful revenue of AED 457 million, up from AED 389 million in H1 2023. This represents a commendable year-on-year growth, underscoring the company's ability to attract and retain customers in a competitive market. Additionally, the company's investment income rose to AED 22 million, compared to AED 12 million in the same period last year.

The company's total equity stands at 71%, with liabilities and borrowings well-managed, reflecting a strong balance sheet. The asset portfolio is diversified, with 58% in investment assets, 23% in cash and bank balances, and the remainder spread across receivables, Takaful assets, and PPE & intangible assets.

Portfolio Breakdown

Watania's portfolio is well-diversified, with 64% of its Takaful contracts in Wakala deposits, 41% in motor and technical insurance, and 59% in family and medical insurance. The asset type distribution includes 14% in equities, 16% in real estate, and 6% in Sukuk, showcasing a balanced approach to risk and return.

Key Shareholders

The company's major shareholders include Mohammed Qusai Mohammed Alghussein, Ali Saeed Sultan Bin Harmal AlDhaheri, MB UAE Investments LLC, Magna Investment LLC, and Mohamed Sultan Mohamed Hashel Alkhyeli. This diversified ownership structure provides stability and confidence to investors.

Market Performance

Watania International Holding PJSC has seen a steady increase in its share price and trading volume throughout the first half of 2024. This positive market sentiment is a reflection of the company's strong financial performance and strategic initiatives aimed at expanding its footprint through Shariah-compliant investments.

Future Outlook

Looking ahead, Watania International Holding PJSC is well-positioned to continue its growth trajectory. The company's strategic focus on expanding its portfolio of Takaful companies and supporting businesses aligns with the growing demand for Shariah-compliant financial products in the region. Moreover, the company's commitment to maintaining a strong balance sheet and diversified asset base provides a solid foundation for future success.

Investment Recommendation

Given the company's impressive financial performance, robust market position, and strategic growth initiatives, we recommend a buy for Watania International Holding PJSC. Investors seeking exposure to the growing Takaful sector and Shariah-compliant investments will find Watania to be a promising addition to their portfolio.