Thirty listed insurance companies in the UAE posted aggregate pre-tax profits of AED1.37bn for the first nine months of this year, representing a 3% decline over the corresponding period of 2018 when combined pre-tax profits stood at AED1.42bn, according to an analysis by the Middle Eastern actuarial consulting firm Badri Management Consultancy.
The insurance industry exhibited a slightly rising trend in loss and combined ratios in the nine months of 2019, when compared with the corresponding period of 2018. The loss ratio and combined ratio for the market during 2019-Q3 stood at 61% and 92% respectively.
Pre-tax gains declined even though gross written premiums for the 30 insurers rose by 10% to AED18.8bn in the first nine months. However, net earned premiums declined by 0.8% to AED7.28bn.
The top five most profitable insurers for the first three quarters of this year, in descending order, were: Orient, ADNIC, Oman Insurance, Emirates Insurance and Dhafra. The top four most profitable insurers were the same ones as for the first nine months of last year.
The pre-tax profits of the top five companies amounted to AED859m which is an increase of 6% from the corresponding period in 2018. Their profit share stood at 63% of the total combined profits of listed insurers.
AKIC was excluded from the analysis of the financial results.