Shareholders of Abu Dhabi-listed Union Insurance Company have approved the distribution of bonus shares totalling AED20m ($5.45m), increasing the company's capital to AED250m. The approval was given at the company's annual general meeting last week.
In addition, shareholders approved a 4% cash dividend for the fiscal year ended 31 December 2025.
Union Insurance CEO Ramez Abu Zaid expressed firm confidence in the company’s ability to sustain its strong financial performance throughout 2026. “The UAE’s strategic resilience, high credit rating and economic diversification serve as a powerful catalyst for growth providing a stable foundation to navigate current global political developments,” he added.
Union Insurance’s key financial indicators for 2025 are:
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20%?growth in Net Profit,?reaching? AED 45.97m?in 2025
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21% increase in Net underwriting Profit, rising to AED24.04m
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4% increase in insurance revenue, totalling AED614.8m
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23ppt increase in the solvency ratio to 175% as of the end of 2025 compared to 143% at the end of 2024.
In June 2025, Union Insurance restructured its financial position by reducing its capital to AED230m from AED330m to offset accumulated losses that had amounted to AED142.75m as of 31 December 2024. The restructuring also involved utilising AED41.81m from reserves, including AED21.85m from the statutory reserve and AED19.95m from the legal reserve.
Union Insurance had said that the accumulated losses were largely due to the following (excluding accumulated losses on restatement of financial statements on adoption of IFRS 17 and 9):
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Item
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AED
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Purchase of investment properties paid for but not received
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72.30m
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Impairment of value of purchased freehold land
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22.83m
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Bad debt provision (owing by former major shareholders since 2019 and 2020)
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26.20m
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