Dubai – Mubasher: The UAE’s insurance sector has seen a profitable year during 2018, reporting profits for the second consecutive year.
The net profits of insurers listed on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) went up 6.4% year-to-year to AED 1.4 billion last year, according to data compiled by AM Best.
However, aggregate underwriting profits for UAE-listed insurance firms declined by 1.7% to AED 1.7 billion in 2018.
“Underwriting returns continue to benefit from improvements in pricing and underwriting discipline as a result of regulatory changes in 2017 in the key business lines of motor and medical insurance,” associate director at AM Best Salman Siddiqui commented.
The Emirati insurance sector posted a 0.5% increase in gross written premium (GWP), recording AED 21.9 billion during 2018, compared to the year before.
Mahesh Mistry, senior director, analytics, noted: “Despite the strong results in 2018, AM Best expects 2019 to be more challenging. Of prime concern is the softening of rates for motor, which occurred in 2018.”
