The United Arab Emirates’ (UAE) insurance market maintained its impressive momentum in 2021, posting another year of strong premium growth, analysis from AM Best shows.
A new Best’s Market Segment Report, “Overall Profits for United Arab Emirates-Listed Insurers Grew in 2021 as Underwriting Earnings Fell,” examines the preliminary disclosures of the national insurers listed on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM). The report reveals that while the market has been resilient to ongoing challenging macroeconomic conditions and intense competition, testing market conditions remain and the marginal net profit growth noted for the period was dependent on a recovery in investment earnings.
Shareholders’ equity for the UAE-listed insurers increased 10.4% to reach AED 19.8 billion (up from AED 18.0 billion as at year-end 2020), compared with an increase in shareholders’ equity of just 3.9% in the previous year.
This was despite only marginal growth in net profit, indicating that companies distributed a lower level of dividends in 2021. Overall, companies in the UAE are well-capitalised and have the capacity to accommodate additional underwriting risk.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
News Source: Business Wire
