Qatar: Takaful sector is GCC's most profitable market in 2022

Source: Middle East Insurance Review | Sep 2023

Qatar’s takaful sector remained the GCC’s most profitable market, with insurers reporting an average combined loss and expense ratio of lower than 80% in 2022.

Aggregate post-tax earnings of GCC Islamic insurers improved by almost 70% in 2022 when compared with 2021, reported Gulf Times quoting a report by S&P Global Ratings.

First-quarter 2023 results suggest it could be another profitable year, thanks to rate adjustments in previously underperforming lines and potentially stronger investment returns, S&P said.

However, earnings were not equal and some takaful markets continued to be more profitable than others, it said.

S&P expects favourable economic conditions and higher insurance prices - reflecting increased claims frequency and costs - and demand will boost business growth prospects for takaful insurers in the GCC over the next 12-18 months.

This comes after strong year-on-year gross written premium/contribution growth of 23% in 2022. M

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