Building on the recovery established in the first half of the year, the UAE insurance industry continued to demonstrate solid improvement for the first three quarters (3Q2025) of 2025, according to BADRI Management Consultancy, an international and risk consulting firm.
Sustained premium rate increases, disciplined underwriting, and renewed focus on technical margins supported the strong performance, said BADRI in its report titled “UAE Listed Insurance Industry Performance Analysis – Q3 2025”.
BADRI said that these factors led to insurance revenue to grow by 18% to AED37.8bn in the first three quarters of this year (3Q2025), compared to AED32.1bn in the corresponding period in 2024. The industry saw broad-based growth across leading and mid-sized insurers. Motor and Medical lines remained key contributors, reinforcing the stability of earned premiums across the market.
The data used in the report is based on the interim financial statements of listed insurers for the first nine months of this year.
Profitability
Underwriting performance strengthened considerably in 3Q2025, with the Insurance Service Result rising by 61% to AED2.4bn (3Q2024: AED1.5bn). This reflects continued adherence to improved risk-based pricing and tighter portfolio management.
The top five insurers accounted for the majority of the improvement, posting an Insurance Service Result of AED1.9bn in 3Q2025, up by 32% over the corresponding period in 2024, highlighting the benefits of scale and operational efficiency in maintaining superior technical performance.
Overall profitability also advanced meaningfully. Net profit increased by 59%, reaching AED2.8bn (3Q2024: AED1.8bn).
The top five insurers and other players contributed to this growth, with the latter showing notable improvement—collectively increasing net profit by 278%. While a few companies continued to report negative insurance results, strong investment income helped offset underwriting pressures, enabling four out of five loss-making insurers at the technical level to still generate positive bottom-line results. Investment income increased by 13% to AED1.8bn, providing additional support to overall profitability.
Several companies recorded strong growth driven by favourable market conditions. Encouragingly, technical profitability continues to form the core of industry performance, as evidenced by consistently improving Insurance Service Ratios across the market. Regulatory pressure from the CBUAE on solvency compliance—combined with recent capital increase announcements and portfolio rationalisation activities—further reinforces the shift toward sustainable underwriting practices.
BADRI said, “Looking ahead, the industry appears well-positioned to maintain its recovery trajectory. Continued rate adequacy, strengthened governance, and improved capital structures are expected to support insurers’ resilience into Q42025. However, companies must remain vigilant regarding potential increases in reinsurance costs and the lagged effects of treaty renewals.
“With underwriting discipline now central to profitability, maintaining strong technical margins will be key to sustaining this positive momentum.”