UAE – Insurance profits expected to decrease by 10% to 15%
Tuesday, 12 08 2015, Category: Insurance and Reinsurance, Country: U.A.E
Mr Mohamed Mazhar Abdulrahman Hamada the General Manager of Al Ain Al Ahlia Insurance expected insurance companies’ profits in the UAE to decrease by 10% to 15% during the current year 2015 compared to the previous year 2014 due to strong competition and ongoing mispricing below technical levels.
He told the “Economic Bayan” that insurance companies’ written premiums will post growth this year. However, this growth will not translate positively on the profits of insurance companies due competitive underpricing and non-technical competition, indicating that numerous companies announced their results for the past 9 months indicating losses in particular from motor and health insurance.
The general manager of Al Ain Al Ahlia Insurance said however that the insurance market in the UAE witnessed positive developments such as the issuance by the Insurance Authority of financial regulations applying to insurance and Takaful companies.
Source: Al Bayan - UAE