54% Drop in Quarterly Investment Profits for UAE Insurers
Thursday, 05 28 2015, Category: Insurance and Reinsurance, Country: U.A.E
According to Al Ittihad, investment profits for 28 national insurance companies listed on the local capital markets dropped by 54% to reach 225 million Dirhams during the first quarter of this year compared to 486 million Dirhams during the same period last year.
Insurance experts have attributed the drop in national insurers’ investment profits to severe declines experienced by the local capital markets, particularly during the last quarter of last year, warning that the continued focus of some insurers on speculation in the capital markets rather than on their main business, insurance, will likely cost the sector even more losses.
In contrast, technical profits for insurance companies listed on the capital markets amounted to around 156 million Dirhams during the first quarter of this year compared to 123 million Dirhams during the same period last year, registering a 27% growth rate as a result of recent improvements in the pricing of insurance policies.
Source: Al Ittihad