The UAE insurance sector reported that written premiums increased by 31.2% year on year (y-o-y) in the first half of 2024 to AED35.7bn ($9.75bn), according to the latest Quarterly Economic Review issued last week by the Central Bank of the UAE (CBUAE).
The growth is attributed mainly to an increase in property and liability insurance premiums by 39.4% y-o-y, health insurance premiums by 30.7% y-o-y, and the insurance of persons and savings by 9.1% y-o-y, and this growth resulting primarily from an increase in group and individual life insurance premiums.
|
1H financial performance
|
1H2024
|
1H2023
|
Change %
|
|
AED bn
|
AED bn
|
|
1. Gross Written Premiums
|
35.7
|
27.2
|
31.2
|
|
Property & Liability
|
13.8
|
9.9
|
39.4
|
|
Health
|
18.3
|
14.0
|
30.7
|
|
Personal and savings
|
3.6
|
3.3
|
9.1
|
|
2. Gross Claims Paid
|
18.9
|
14.1
|
34.0
|
|
Property & Liability
|
3.9
|
5.7
|
46.2
|
|
Health
|
10.7
|
9.2
|
16.3
|
|
Personal and savings
|
2.5
|
1.0
|
150.0
|
|
3. Earnings Ratios
|
|
|
|
|
Net total profits to net written premiums
|
6.0
|
10.4
|
-4.4ppt
|
|
Return on average assets
|
0.7
|
0.5
|
0.2ppt
|
|
|
30.6.2024
|
30.6.2023
|
|
|
Total Assets
|
154.8
|
127.7
|
21.2
|
|
Total Equity
|
28.0
|
27.0
|
3.7
|
|
Funds to Minimum Capital Requirement
|
376.0
|
352.4
|
23.6ppt
|
|
Solvency ratio
|
185.8
|
203.4
|
-17.6ppt
|
The gross paid claims of all types of insurance branches increased by 34.0% year on year to AED18.9bn in 1H2024. This was mainly driven by the rise in claims paid in property and liability insurance by 46.2% y-o-y, and by 150% in life and savings insurance.
The retention ratio of written insurance premiums for all types of insurance was 53.1% in 1H2024, compared to 53.8% in 1H2023.
The UAE insurance sector remained well-capitalised. With regard to the various capital adequacy ratios, the own funds to Minimum Capital Requirement ratio increased to 376% in 1H2024, compared to 352.4% in the first half of 2023; the own funds to Solvency Capital Requirement ratio reached 185.8% 1H2024 compared to 203.4% in 1H2023.
The number of licensed insurance companies in the UAE is 59, comprising 23 traditional and 10 takaful national companies, 25 branches of foreign insurance companies operating in the UAE, and one branch of a foreign reinsurance company operating in the UAE.