United Fidelity Insurance Company (Fidelity United) has announced capital injection of AED107m ($29.1m) that increases its paid-up capital to AED267m ($72.7m).
In a media statement, Fidelity United said, “The capital increase enhances Fidelity United’s growth strategy, secures sustainable profitability and is a testament to shareholders’ unwavering confidence in the company’s leadership and vision.”
Fidelity United CEO Ahmed Nasef said, “This capital injection is more than a financial milestone. It’s a strong vote of confidence in the transformation journey we began in 2024. We remain committed to delivering exceptional value to our customers, shareholders, and the UAE’s insurance industry.”
Improved financial results in 2Q2025
Mr Nasef also said that the insurer made substantial improvement in profitability in the second quarter of this year, driven by disciplined portfolio management, strong technical performance and enhanced investment returns.
Insurance service results jumped by 109% to a positive AED1.6m from a deficit of AED16.8m in the second quarter of 2024, despite insurance revenue in the second quarter falling by 8.5% to AED140m against AED153m in the corresponding period of 2024. On a bright note, insurance service expense dropped by 73% to AED93.2m in 2Q2025 from AED347m in 2Q2024.
Mr Nasef said, “This decline in the insurance revenue is a result of a portfolio optimisation process the company embarked on over a year ago, which was reflected positively on the insurance service results. We consider it a healthy indicator, especially considering that the company went through a challenging period over the past couple of years.”
On the right track
He added, “Fidelity United looks with optimism to the outcomes of 2025 and we are on the right track to overcome challenges. With the capital increase and the expertise accumulated over decades, we will be further capable of boosting our efficiency and strengthening our competitive position in the UAE market.”