UAE insurance sector grows by 12% in 2017
The Insurance Authority, the regulator of the UAE insurance industry has launched the 2017 highlights of the sector. The gross written premium for 2017 equals AED44.8 billion, showing 12 percent growth compared to the gross written premiums of AED40 billion in 2016.
The gross written premium in non-life insurance is AED15.6 billion, of which national companies’ share is AED11.6 billion (a marketshare of 74.4 percent). Whereas for life insurance and fund accumulation the gross written premium is AED9.8 billion. Of this amount, the share of national companies is AED2.1 billion and the percentage of 21.4 percent. Foreign companies have a market share of 78.6 percent amounting to AED7.7 billion.
In 2017, the gross written premium for health insurance was AED19.4 billion of which national companies wrote AED14.4 billion, a share of 74.2 percent. Foreign companies wrote premiums worth AED5 billion.
The total of the assets of all the insurance companies operating in the sector in the end of 2017 has risen to reach AED103.9 billion, of which the national companies share is 60 percent, compared to AED89.9 billion in the end of 2016. This is an increase in the value of assets of AED14 billion and with a percent of 16 percent.
The total of the liabilities of all the insurance companies operating in the sector at the end of 2017 has risen to reach AED79.9 billion, of which the share of the national companies is 53 percent, compared to AED69.4 billion at the end of 2016.
This is an increase in the value of liabilities amounting to AED10.5 billion with a percent of 15 percent. The total of the technical provisions in 2017 represent the highest percent of the total of liabilities, as they have reached 78.3 percent, followed by the total of insurance and reinsurance payable with a percent of 10.6 percent, followed by accrued expenses and other liabilities, with a percent of 7.6 percent.
The net gross value of the profit of all the companies operating in the UAE in 2017 reached a total of AED2.2 billion, compared to AED1.8 billion in 2016, with an increase of AED0.4 billion and a percent of 22 percent. The share of national companies of these profits is a percent of 68 percent while the share of the foreign companies is 32 percent. The value of technical profits of national companies amounted to AED0.9 billion. However, foreign companies’ branches have suffered insurance losses of a total of AED0.4 billion. The net sum of commissions paid by national companies amounts to AED0.7 billion; whereas for branches of foreign companies the amount is AED1.8 billion.