20-Feb-19, iPMIM
The insurance market of the United Arab Emirates (UAE) continued its earnings momentum in 2018 to post a second consecutive year of bumper profits. Analysis of the preliminary disclosures of the national insurers listed on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) shows material improvements in both underwriting and overall performance, combined with modest premium growth.
%20Zawya.jpg "Profits continue to rise for national insurers in the UAE (c) Zawya")
Image: Zawya
Aggregate underwriting profits for UAE-listed insurers experienced a marginal decline of 1.7% to reach AED1.7 bn (USD463 mn). Net profits, however, showed a strong increase, increasing 6.4% to AED1.4 bn (USD381 mn).
Salman Siddiqui, associate director at AM Best, said, "Underwriting returns continue to benefit from improvements in pricing and underwriting discipline as a result of regulatory changes in 2017 in the key business lines of motor and medical insurance."