UAE insurance firms’ profits slump 23% to Dh1.52 billion

UAE insurance firms’ profits slump 23% to Dh1.52 billion

Lower rates, rise in commissions hurt bottomlines

Photo for illustrative purposes only. - KT file

Published: Fri 17 Feb 2023, 3:05 PM

The UAE insurance sector’s net profit slumped by nearly one-fourth year-on-year in 2022 due to a reduction in rates and an increase in commissions.

According to a study released by Badri Management Consultancy, the UAE-listed insurers’ profits dropped by around Dh462 million or 23 per cent to Dh1.52 billion in 2022 as compared to Dh1.99 billion in the previous year.

“While the numbers show a decrease of 23 per cent, the underlying situation could be much worse due to a few factors that are not captured by these results. A key factor being inter-company receivables... There is a possibility that between the issuance of preliminary and final audited accounts, there could be a revision in profits due to scrutiny by the auditors,” said Hatim Maskawala, managing director, Badri Management Consultancy.

The local listed insurers’ gross written premiums increased by 11 per cent to Dh29 billion last year, up from Dh26 billion in 2021. The top three insurers accounted for Dh2.8 billion of the total increase.

The highest gross written premium insurers last year were Orient, Abu Dhabi National Insurance Co., Oman Insurance, Dubai Insurance and