The net-net combined ratio of Dubai National Insurance & Reinsurance (DNI) stood at 99.8% in the third quarter of 2025, lower than the 104.2% recorded for the full year 2024, noted AM Best. UAE market conditions have improved in 2025, primarily for the motor segment.
Nevertheless, recent underwriting performance has been under pressure, as is indicated by DNI’s five-year (2018-2022) weighted average combined ratio of 85.3%, reported under IFRS 4, said AM Best.
In 2024, technical profitability was largely affected by unprecedented rainfall events. Additionally, the late reporting of certain motor claims continued to influence results in 2025, alongside the persistently high level of competition in the UAE insurance market.
Nonetheless, AM Best expects the company’s underwriting performance to improve as management continue to execute its strategic plan and take corrective actions.
Ratings affirmed
AM Best has affirmed DNI’s Financial Strength Rating at ‘A-‘ (Excellent) and its Long-Term Issuer Credit Rating at ‘a-‘ (Excellent), with a stable outlook for both ratings. This reflects the company’s resilient technical performance and its ability to navigate the competitive UAE insurance market.
The ratings reflect DNI’s balance sheet strength, which was assessed by AM Best as very strong, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management.
DNI’s balance sheet strength is supported by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This has been bolstered by solid earnings retention in recent years, primarily driven by investment performance. The assessment also takes into account the company’s low underwriting leverage, strong liquidity levels, and prudent reserving practices.
An offsetting factor is DNI’s high reliance on reinsurance, as reflected in its three-year (2022–2024) average retention ratio of approximately 49.9%. The associated counterparty credit risk is partially mitigated through a panel of international reinsurers with excellent financial strength.
Business profile
According to AM Best, DNI is a mid-tier insurer in the UAE general insurance market. The company reported AED469m ($127m) of insurance service revenue last year. Although DNI’s underwriting performance is geographically concentrated in the highly competitive UAE market, the company has started to broaden its distribution platforms and entered strategic partnerships for more profitable growth.