The UAE insurance sector experienced significant growth in gross written premiums during Q2 2024, as outlined in the Quarterly Economic Review released by the Central Bank of the UAE (CBUAE).
In the first half of 2024, gross written premiums rose by 31.2% year-on-year to Dh35.7 billion. This increase was largely driven by a 39.4% rise in property and liability insurance premiums, a 30.7% increase in health insurance premiums, and a 9.1% rise in insurance of persons and fund accumulation premiums, mainly from group and individual life insurance.
Gross paid claims across all insurance types also rose, increasing by 34.0% year-on-year to Dh18.9 billion in H1 2024. This growth was significantly influenced by a 46.2% surge in claims for property and liability insurance and a 150% increase in claims related to insurance of persons and fund accumulation.
Total technical provisions for all insurance types rose 22.8% year-on-year to Dh94.2 billion in H1 2024. Invested assets in the insurance sector amounted to Dh78.7 billion, accounting for 50.8% of total assets, a decrease from Dh72.9 billion (57.1% of total assets) during the same period in 2023. The retention ratio of written insurance premiums was 53.1% (Dh18.9 billion) in H1 2024, slightly down from 53.8% (Dh14.6 billion) a year earlier.
The insurance sector remained well-capitalised, with the own funds to Minimum Capital Requirement ratio increasing to 376% in H1 2024, up from 352.4% in the first half of 2023. The own funds to Solvency Capital Requirement ratio was 185.8% in H1 2024, compared to 203.4% in the previous year. The own funds to Minimum Guarantee Fund ratio stood at 286.7%, down from 308.9% in H1 2023.
In terms of profitability, the net total profit to net written premiums was 6% in H1 2024, a decrease from 10.4% the previous year. The return on average assets rose to 0.7%, up from 0.5% in the first half of 2023.
The UAE currently has 59 licensed insurance companies, including 23 traditional insurers, ten takaful national companies, and 25 branches of foreign insurance companies, along with one branch of a foreign reinsurance company. The total number of insurance-related professionals reached 498.
