UAE: Insurance sector saw 21% profit surge in 1Q

Source: Middle East Insurance Review | Jul 2018

The insurance sector in the UAE has registered an overall top-line growth of 6%, while net profit grew by 21% to AED568m ($154.7m) in the first three months of this year from AED469m in the corresponding quarter in 2017, according to the 1Q18 Performance Periodical by Insurance Monitor.

The first-time application of IFRS 9 and the introduction of VAT from 1 January 2018 are among some of the key changes faced by insurers in 1Q18.

The first quarter also saw a decrease of AED257.7m in the total net assets of 29 insurers from AED16.47bn at 31 December 2017 to AED16.22bn at 31 March 2018 that is likely to be on account of dividend payout and prior period impact of IFRS 9 routed to equity.

While overall performance of the sector appears strong, at least 14 out of 29 insurers recorded a decline in gross premiums. M

AED1 = $0.27

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