UAE insurers will close 2023 much stronger as premium hikes, mergers give strength

UAE insurers will close 2023 much stronger as premium hikes, mergers give strength

Dubai: All that hard work of the last 3 years is starting to pay off for the UAE insurance sector, with its leading names closing out 2023 in a much stronger position than in the recent past.

This is where mergers and acquisitions have helped, with the UAE Central Bank – in its capacity as regulator – providing the guiding hand. The initial results are very much in positive territory.

Nothing exemplifies this than the numbers for Watania International Holding, boosted by integrating Dar Al Takaful into its fold. The merger led to cost synergies of around Dh20 million in 2023, according to a statement the insurer put up on DFM after its nine-month results. Just as vital was bringing down the net loss, from Dh26.5 million in Q3-22 to Dh6.6 million for the recent third quarter.

“Our company is well positioned to play an expanding leadership role in the growth of the national insurance sector,” said Dr. Ali Saeed Bin Harmal Al Dhaheri, Chairman of Watania, in a statement at the time. “The outlook for our financial performance is increasingly positive as we achieve further milestones in the journey to complete the integration and transformation of the merged entity.”