Emirates Insurance Company

Established in 1982 in Abu Dhabi with public and private funds, Emirates is one of the first Gulf insurers to obtain an A- (excellent) from AM Best.

With a turnover of 171 000 000 USD in 2010, the company ranks eighth in a market which counts thirty insurers.

Unrestrained competition which reigns in the United Arab Emirates and in the entire region has not kept Emirates from achieving outstanding results. For the 2005-2010 period, the average underwriting results amounted to 11% of the written premiums while the net income reached 27% of the same written premiums. The average loss ratio (2005-2010) is below 50% and the combined ratio sky-rocketed at 77.8% in 2007 to later settle around 62%.

The icing on the cake, Emirates benefits from handsome reinsurance commissions. The only inconvenience is the return on investments which remains rather low. In fact the company is undergoing the fallout of the financial crisis that has strained the region since 2008.

Despite uncertainties regarding local stock markets and return on investments, long-term perspectives remain quite robust. Emirates is dotted with substantial funds which, in a very fragmented market, is likely to help it consolidate its position when the bell of mergers tolls.

Abdullah Muhammed Al Mazrui	Jason Light
Chairman of the board	CEO

Main technical highlights: 2005-2010

in thousands USD

	2005	2006	2007	2008	2009	2010
Gross written premiums	85 739	93 361	133 091	180 415	175 066	171 438
Gross earned premiums	83 016	84 674	122 648	158 180	175 884	171 034
Earned premiums*	22 424	23 357	31 666	51 816	58 293	60 389
Reinsurance premiums ceded	60 592	61 316	90 982	106 364	117 591	110 645
Gross incurred losses	24 297	36 791	81 884	80 229	86 723	83 740
Loss ratio	29.3%	43.5%	66.8%	50.7%	49.3%	49%
Management expenses1	8 269	9 365	14 528	21 535	21 723	23 778
Technical result	9 669	6 467	12 572	13 759	14 978	16 365
Net investment income	78 258	16 796	25 620	19 625	4 196	15 748
Net result	86 876	22 618	36 948	30 849	17 275	29 416

¹ Commission expenses + operating expenses * Net of reinsurance

Evolution of premiums, losses, management expenses and results

in thousands USD

Turnover’s evolution per class of business: 2005-2010

in thousands USD

	2005	2006	2007	2008	20091	20101	2010 shares	2009/10 growth
Non life
Motor	-	22 602	33 773	48 438	49 365	53 958	28.9%	9.3%
Marine	9 757	11 313	14 969	22 314	24 025	25 795	13.8%	7.4%
Fire and accident	75 982	53 077	43 547	47 077	37 186	34 128	18.3%	-8.2%
Engineering	-	-	26 673	32 654	34 847	36 159	19.3%	3.8%
Oil and gas	-	-	-	-	8 865	8 980	4.8%	1.3%
Total non life	85 739	86 992	118 962	150 483	154 288	159 019	85.1%	3.1%
Life
Total life	-	6 260	14 153	29 917	37 036	27 885	14.9%	-24.7%
Grand total	85 739	93 252	133 115	180 400	191 324	186 904	100%	-2.3%

¹ Figures include commissions received from reinsurers

Breakdown per class of business in 2010

Ratios’ evolution: 2005-2010

¹Management expenses on gross written premiums

Exchange rate AED/USD as at 31/12	2005	2006	2007	2008	2009	2010
	0.27233	0.27219	0.27217	0.27212	0.2722	0.27221