Contact Financial Holding, a leading provider of non-banking financial services in Egypt, reported consolidated operating profits for the second quarter reached EGP 561.8m. The company attributed the strong second-quarter results for 2024, driven by a significant profit increase from its insurance division.
The company's adjusted net profit amounted to EGP 158.3m. This represents a 27% and 172% increase in consolidated operating profits and adjusted net profit, respectively, compared to the first quarter of 2024.
The company attributed the growth to gradual market improvement. Total insurance premiums increased by 32% year-on-year to EGP 520.4 m during Q2 2024, while the division's operating income increased by 92% year-on-year to EGP 140.9m, leading to a 355% increase in net profit, reaching EGP 61.5m.
"We are immensely proud of our performance in the first half of 2024, which underscores our ability to capitalize on our market-leading position and our diverse product portfolio," said Contact CEO Said Zater. "The strategic growth initiatives we've implemented, coupled with robust risk management practices, have empowered us to navigate the market'schallenges effectively."
The company's finance portfolio reached EGP 20.4bn.
In the insurance division, Sarwa Life recorded a 58% year-on-year increase in total insurance premiums to EGP 743.2m during the first half of 2024, driven by growth in life insurance and health insurance products.
Similarly, Sarwa Insurance recorded a 31% increase in total insurance premiums, reaching EGP 472.8m during the first half, thanks to the successful management strategy of expanding the company's market presence and broadening its services through multiple channels. In the second quarter, Sarwa Life's total insurance premiums increased by 36% to EGP 287.9m, while Sarwa Insurance's total insurance premiums increased by 27% to EGP 232.5m.
Contact also made significant progress in the performance of its digital platforms during the first half of 2024. The number of downloads of the "ContactNow" app reached 1.03 m, with 682,000 registered customers.
The application is the first comprehensive digital financial platform in Egypt, offering various services, including instant credit approvals, account management, and bill payments. The "ContactCars.com" platform also achieved an 82% annual increase in paid registrations from dealers, and a 70% increase in visits, reflecting the success of the company's efforts to enhance user experience and strengthen its strategic partnerships.
Zater added: "I'm also particularly pleased with the sustained growth in our insurance division, where we've focused on enhancing our market presence and driving sales across various client sectors. We are making significant progress in advancing our digital platforms, aligning with our ongoing investments and commitment to digital transformation."
He continued: "The strong results we've achieved in the first half of 2024, despite the challenges and obstacles, reaffirm our forward-looking vision and adaptability to market dynamics. We've successfully expanded our product offerings by venturing into new areas, especially within insurance and finance, which has allowed us to achieve greater integration and reinforce our market position. With this strategy, we remain on a steady path toward sustainable growth."
