Underwriting results in the red for nearly half the insurers

With 3.5 billion AED (953 million USD) in premiums, the turnover of the 29 Emirati insurers listed in the stock market underwent a 9% increase in the first three quarters of 2015. Despite these good figures, the results pertaining to aggregate underwritings for those licensed insurers are in the red zone. They showcase a combined ratio of 103%. Nearly half of them, that is, 13 companies, have announced underwriting losses.

Net profits have gone down by 90% in comparison with the first 3 quarters of 2014. This situation is due to fierce competition between all players in all classes of business, to the corrective measures imposed by the regulators with regard to reserves and to the poor return on investments.