UAE: Listed insurers' profits surge 50% to $319 mln in 9M 2017
Source: Middle East Insurance Review | Dec 2017
The total profit generated for the first nine months of 2017 by 28 listed insurers in the UAE amounted to AED1,170 million (US$318.6 million), up 50.4% compared to the same period last year, according to an analysis by Badri Consultancy.
Orient Insurance booked the highest profit of AED307 million during the first nine months of 2017 as compared to AED263 million in the corresponding period of 2016.
Green Crescent Insurance posted the highest loss of AED21 million in the first nine months of 2017 as compared to a loss of AED13 million in the corresponding period of 2016.
Two out of the 28 companies posted losses in the first nine months of 2017, as compared to eight insurers being loss making in the same period last year.
Of the six companies that turned around from loss to profit, Salama reported a profit of AED61 million in the first nine months of 2017, back in the black from a loss of AED173 million in corresponding period of 2016.
Total gross premiums grew by 15.2% to AED16.7 billion in the first nine months of 2017. Of the 28 listed companies, 22 registered growth in GWP, while six companies saw premiums plummet.
The top five companies had a combined premium of AED9.7 billion for the first nine months of 2017 as compared to AED8.2 billion for 2016. Their market share has marginally increased from 56.5% to 58.8%.
Badri Consultancy said that the key reasons for the improvement in the insurers’ financial performance are higher premiums as a result of: actuarial pricing reviews being carried for the first time in the UAE in 2Q 2016, and the introduction of a unified motor policy along with a minimum tariff.
Furthermore, insurers are becoming more conscious about profitability due to continual monitoring under the new financial regulations. M
AED1 = US$0.27