The Central Bank of the UAE (CBUAE) announced that the UAE insurance sector continued to grow in Q1 2024, reflected by the increase in gross written premiums.
In its Quarterly Economic Review for June 2024, CBUAE said that the number of licensed insurance companies in the UAE remained at 60, comprising 23 traditional and 10 takaful national companies, and 27 foreign companies. The number of insurance related professions increased to 500.
In Q1 2024, the Bank reported an 18.5% Y-o-Y increase in gross written premiums to AED21.1 billion, driven by higher premiums in property, liability, health, and life insurance. Additionally, gross paid claims rose by 18.3% Y-o-Y to AED8.4 billion, largely due to higher claims in property, liability, and life insurance.
The total technical provisions 8 of all types of insurance increased by 6.9% Y-o-Y to AED78.8 billion in Q1 2024 compared to AED73.7 billion in Q1 2023. The volume of invested assets of the insurance sector amounted to AED72.2 billion (54.8% of total assets) in Q1 2024 compared to AED70.5 billion (54.9% of total assets) in Q1 2023.
The retention ratio of written insurance premiums for all types of insurance was 50.2% (AED10.6 billion) in Q1 2024, compared to 53.2% (AED9.5 billion) Q1 2023.
“The UAE insurance sector remained well capitalized on aggregate,”
explained the report, stating that own funds to minimum capital requirement ratio increased to 376.9% in Q1 2024, compared to 340.6% in Q1 2023.
Also, own funds to solvency capital requirement ratio reached to 194.8% in Q1 2024 compared to 198% in Q1 2023, as a result of an increase in own funds eligible to meet solvency capital requirements. Finally, own funds to minimum guarantee fund ratio decreased to 301.5% in Q1 2024 compared to 309.3% in Q1 2023.
In terms of profitability, the net total profit to net written premiums increased to 8.0% in Q1 2024, compared to 7.8% in Q1 2023. The return on average assets increased to 0.6% in Q1 2024 compared to the 0.5% in Q1 of the previous year.
News Source: Emirates News Agency
