Total written premiums of the UAE insurance industry grew 9 per cent in the first half of 2019 to Dh13.7 billion compared to Dh12.6 billion in the year-ago period.
The written premiums of the top five companies was Dh8 billion, which contributed 58 per cent to the market share during first half of 2019. Adnic, Orient, Oman Insurance and Salama maintained their position in the top ranks from the year ended 2018 as Adnic jumped eight places to secure fourth position in the first half, according to a Badri Management Consultancy report released recently.
The average premium retention ratio was at 41 per cent.
The highest growth was shown by Adnic with a 131 per cent leap, while the biggest decline of 37 per cent was exhibited by Al Ain Ahlia Insurance Co compared to the corresponding period of 2018.
"Overall, the market has shown a sizeable growth in written premiums in first half of 2019; of the 29 companies considered, 21 companies displayed an increase in premiums over previous period, while eight companies saw premiums decline," Badri analysts said.
Listed takaful insurers saw a growth in written premiums by 13 per cent from the first half of 2018 while the gross written premium grew by 8 per cent for conventional insurers. Out of 30 insurance companies, nine operate as takaful insurers in the UAE.
Total profits of UAE insurers for the first half of 2019 amounted to Dh1.02 billion compared to Dh1 billion recorded for the first half last year, showing a growth of 2 per cent.
Orient booked the highest profits for the third-straight year, amounting to Dh271 million, a growth of 9 per cent. The highest profit growth of 125 per cent was posted by UFI, which moved their financial position from losses to making profits in the first half of 2019. The biggest decline of 80 per cent for the period was recorded by Al Wathba National Insurance Co.
In contrast, net profits for takaful companies experienced a decline of 10 per cent.
"This year insurance companies have shown a better performance in terms of profits where only one company of the 29 under review recorded loss, which was also at loss in the corresponding period of 2018. Whereas, the other two loss making companies as at first half of 2018 have started recording profits," Badri analysts added.
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