UAE: Almost 50% of all premiums ceded to foreign reinsurers in last 3 years
Source: Middle East Insurance Review | Sep 2015
Local insurers ceded premiums totalling AED22.64 billion (US$6.16 billion) to reinsurers overseas during the past three years as a result of inadequate capacity to cover major risks and the lack of local reinsurance, according to data from the Insurance Authority. Premiums ceded to overseas reinsurers accounted for 45.2% of total premiums written of AED50.12 billion by local insurers during 2012 to 2014.
In 2014 alone, local insurers ceded premiums worth AED8.52 billion, or 45.6% of total premiums written, to reinsurance companies overseas, reported the Argaam news website. In 2013, they ceded written premiums of AED7.5 billion to reinsurance companies outside the country, representing 45% of total premiums.
At the end of 2014, there were 60 insurance companies operating in the UAE, of which 34 were local insurers, and 26 had foreign ownership.
AED1 = US$0.27