UAE: Net profit soared 40% to $270.7m in 2Q18
Source: Middle East Insurance Review | Oct 2018
Net profit posted by the local insurance sector in the UAE surged by 40% to AED994m ($270.7m) for the second quarter of this year from AED712m for 2Q17, according to the 2Q18 Performance Periodical by Insurance Monitor.
The overall contribution to net profit stems largely from a 77% increase in technical profit to AED543m for 2Q18 compared to AED307m for the corresponding quarter in 2017.
Investment income has remained relatively constant in absolute terms, rising by 11% to AED450m for 2Q18 from AED405m for 2Q17.
The switch in the proportion of technical profit to investment income translates from 43:57 in 2Q17 to 55:45 in 2Q18, respectively. The weighted average net combined ratio improved by four percentage points from 93% to 89%.
While the overall performance of the sector appears strong, at least 12 out of 30 insurers recorded a decline in gross premiums. M
AED1 = $0.27