Union Insurance Company has announced that its net profit jumped by 20% to AED45.97m ($12.52m) in 2025 from AED38.3m in 2024.
The robust performance is attributed to a strategic focus on core portfolio growth and a commitment to underwriting excellence, as demonstrated by the following financial indicators:
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20% growth in net profit, reaching AED45.97m in 2025 from AED38.3m in 2024
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21% y-o-y increase in net underwriting profit, rising from AED19.8m in 2024 to AED24.04m in 2025
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Insurance revenue rising from AED591.4m in 2024 to AED614.8m in 2025 in accordance with IFRS 17
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Increase in solvency ratio to 175%
On the back of these results, the board of directors recommended distributing bonus shares totalling AED20m, bringing the company’s capital to AED250m. This strategic move aims to strengthen the company’s capital base and reinforce its long-term financial stability. Additionally, the board recommended a 4% cash dividend for the year ended 31 December 2025. These recommendations are subject to shareholders’ approval at the upcoming Annual General Meeting in March.
“For the second consecutive year, the company has achieved unprecedented growth rates, driven by a prudent risk management framework,” said Union Insurance CEO Ramez Abou Zaid. “In alignment with the board’s vision, we have maintained solid technical discipline and strong financial performance. This has been positively reflected in our financial results, further enhancing our ability to deliver sustainable value to both our customers and shareholders,”
This strong performance follows a significant milestone in late 2025, when Fitch Ratings upgraded the company’s Insurer Financial Strength (IFS) Rating to 'BBB+' from 'BBB' with a stable outlook. The upgrade reflects improved underwriting profitability, strong capitalisation and robust reinsurance.
Established in 1998 and listed on the Abu Dhabi Securities Exchange, Union Insurance has a paid-up capital of AED230m. The company provides a wide range of individual and commercial insurance products to clients in the UAE.
In 2025, the shareholders of the company approved a reduction in statutory reserve and share capital of 30.50%, equivalent to 100,939,180 shares out of the Company's total 330,939,000 issued shares. This resolution was passed at the annual general meeting held on 21 April 2025, and the capital reduction was subsequently approved by all relevant regulatory authorities.
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Net profits, share capital, retained earnings, and shareholders’ equity of Union Insurance
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AED’000
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2025
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2024
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2023
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2022
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Net profit/(loss) after tax
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45,977
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38,307
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(2,479)
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2,506
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Balance Sheet
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31 Dec 2025
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31 Dec 2024
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31 Dec 2023
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31 Dec 2022
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Share capital
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230,000
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330,939
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330,939
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330,939
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Accumulated profits/(losses)
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39,739
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(142,745)
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(171,641)
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(167,043)
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Shareholders’ equity
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289,313
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243,338
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205,026
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207,508
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Source: Financial statements of Union Insurance
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