The UAE insurance sector continued to grow in 1Q2024, reflected by the increase of 18.5% year on year in gross written premiums to AED21.1bn ($5.7bn), according to the "Quarterly Economic Review June 2024" published by the Central Bank of the UAE.
The growth was mostly due to a rise in property and liability insurance premiums by 24.6% year on year, in health insurance premiums by 15.1% y-o-y, and in life insurance premiums and savings by 15% y-o-y.
Gross paid claims of all types of insurance plans increased by 18.3% y-o-y to AED8.4bn in 1Q2024. This was mainly driven by the increase in claims paid in property and liability insurance by 47.1% y-o-y.
As of the end of 1Q2024, the number of licensed insurance companies in the UAE remained at 60, comprising 23 traditional insurers and 10 takaful companies, and 27 foreign companies.
A summary of the insurance industry’s 1Q2024 financial data is as follows:
|
|
1Q2024*
AED bn
|
1Q2023
AED bn
|
Y-o-Y change %
|
|
GWP
|
21.1
|
17.8
|
18.5
|
|
Property & liability
|
8.1
|
6.5
|
24.6
|
|
Health
|
10.7
|
9.3
|
15.1
|
|
Life & fund accumulation
|
2.3
|
2.0
|
15.0
|
|
Gross paid claims
|
8.4
|
7.1
|
18.3
|
|
Property & liability
|
2.5
|
1.7
|
47.1
|
|
Health
|
4.9
|
4.9
|
-
|
|
Life & fund accumulation
|
1.0
|
0.5
|
100.0
|
|
Retention ratio
|
50.2% **
|
53.2%
|
-3.0ppt
|
|
|
31 Mar 2024
|
31 Mar 2023
|
|
|
Total assets
|
131.7
|
128.3
|
2.7
|
|
Total equity
|
27.9
|
26.3
|
6.1
|
|
Capital adequacy ratios
|
|
|
|
|
Own funds to minimum capital requirement
|
376.9%**
|
340.6%
|
36.3ppt
|
|
Own funds to solvency capital requirement
|
194.8%**
|
198.0%
|
-3.2ppt
|
|
Source: CBUAE
Notes: * Preliminary data, cumulative at end of period. ** Estimated
|