Al Dhafra Insurance

The United Arab Emirates are thriving in spectacular fashion. Abu Dhabi and Dubai are playing a key role in the development of this seven-emirate federation, each of which is dotted with a large autonomy. With nearly 6 billion USD turnover in 2010, the UAE is by far the largest market in the MENA region. According to forecasts, its potential annual growth is set at 11% for non-life business and 8% for life.

Present on the market since 1979, Al Dhafra Insurance is a state-owned company operating in life and non life insurance. In a highly competitive market, the company has reported in 2010 a turnover of 77 million USD, that is an increase of 19.3% in comparison with 2009.

Kamal Sartawi

General manager

During the 2006-2010 period, Al Dhafra has displayed excellent technical indicators. The 62% loss ratio in 2006 was only 60.5% in 2010. The 69.2% combined ratio in 2010 is the lowest rate posted over the last five years. This meticulous technical management enables Al Dhafra to report a return on equity of 17.7% in, up by 0.9 point compared to 2009.

After the opening of the market to foreign companies in 2005, Al Dhafra, along with other Emirati insurers, had to struggle to maintain and develop its positions. Today, a new challenge is looming ahead. The company must not only increase its capital to 100 million AED (27 million USD) to be in compliance with local legislation, but must also seek additional sources of income to be able to continue to remunerate its shareholders easily.

Main technical highlights: 2006-2010

in USD

	2006	2007	2008	2009	2010
Gross written premiums	51 152 165	57 807 709	64 075 739	64 517 884	76 967 091
Written premiums*	20 278 108	25 565 866	29 170 666	27 276 554	36 891 095
Net earned premiums	16 196 190	22 583 655	26 283 765	27 291 780	32 038 566
Incurred losses*	10 049 613	14 479 714	19 413 964	17 513 635	19 382 160
Net loss ratio	62%	64.1%	73.9%	64.2%	60.5%
Management fees	6 901 270	7 813 085	9 514 283	9 194 557	6 725 013
Net result	11 428 876	16 384 704	11 798 794	13 122 306	14 554 735

* Net of reinsurance

Evolution of premiums, losses, management expenses and results

in thousands USD

Turnover’s evolution per class of business: 2006-2010

in USD

	2006	2007	2008	2009	2010	2010 shares	09-10 growth
Fire & Accident	46 443 960	52 601 268	59 183 177	59 567 361	69 901 574	90.8%	17.3%
Marine	4 708 205	5 206 441	4 892 562	4 950 522	7 065 517	9.2%	42.7%
Total	51 152 165	57 807 709	64 075 739	64 517 884	76 967 091	100%	19.3%

Breakdown per class of business in 2010

Evolution of ratios: 2006-2010

¹ Management expenses on gross written premiums

Exchange rate AED/USD as at 31/12	2006	2007	2008	2009	2010
	0.27219	0.27217	0.27212	0.2722	0.27221