The absence of rains coupled with rising premium rates has led to insurance revenue growing by 21% in the first three months of 2025 in the UAE, reaching AED11.9bn ($3.2bn) versus AED9.8bn in the corresponding period last year, says Badri Management Consultancy, an international actuarial and risk consulting company.
In its report, titled 'Insurance Industry Performance Preliminary Analysis – Q1 2025', Badri says that this growth is expected to continue, driven by rising premiums both for Motor and Medical, the dominant branches in the UAE insurance market.
The industry’s net profit increased by 24%, reaching AED987m in 1Q2025 from AED797m in 1Q2024. The proportion of industry profits driven by insurance service results increased from 56% to 77%. The combined investment income of the listed insurers fell in 1Q2025 compared to the corresponding quarter in 2024.
Insurance service results for the analysed listed companies saw a 70% increase, from AED447m to AED762m. The leading five companies posted a 43% increase collectively, moving to AED629m in 1Q2025 from AED440m in 1Q2024.
Revenue growth
In summary, the UAE insurance industry showed strong revenue growth in 2024 and continued this trend into 1Q2025, fuelled by rising premiums and better risk pricing practices. The increasing concentration of revenue and profit among leading companies reflects a changing market dynamic, where scale and efficiency are key to sustainability and expansion.
The report said, “Going forward, the industry must align premium growth with stronger underwriting and better claims controls to maintain long-term profitability.”
Regulatory actions by the Central Bank of the UAE have been key in enhancing market discipline and curbing the sale of underpriced policies by financially weak insurers. Still, the industry must stay alert to increasing reinsurance costs and the lagging financial effects tied to some treaty arrangements.
To access the report, please click here.