GCC: Weaker underwriting performance slows down profit growth in 9M2024
Source: Middle East Insurance Review | Dec 2024
The latest financial results of 77 listed insurers across the GCC revealed a general decline in underwriting performance, with net combined ratio (NCR) rising by 1.3%, according to the ‘Q3 2024: GCC Performance Periodical’ by Insurance Monitor in association with Lux Actuaries and Consultants.
This led to a slowdown in average after-tax profit growth to 4.5% in the first nine months of this year, compared to 8.0% in 1H2024, despite higher investment income.
In the UAE, losses increased for several insurers since 1H2024, notably ALAIN (up by AED37m ($10.1m)) and ABNIC (up by AED23m) owing to motor and general lines of business.
In Saudi Arabia, earnings for insurers outside the top three players dropped by 28% due to an increase of 2.3% in the NCR for medical business.
Oman registered total losses of $6m in 9M2024, despite a strong recovery from LIVA in the third quarter, which posted a profit of OMR5.3m ($13.8m) following significant weather-related losses in 1H2024.
In terms of revenue, the region saw an overall increase, with listed insurers registering a 13.9% growth in 9M2024. Higher rates following the adverse weather events in 1H2024, mandatory coverage, as well as market consolidation were underlying factors. M