UAE – Insurance difficulties in asset distribution
Monday, 08 21 2017, Category: Insurance and Reinsurance, Country: U.A.E
The insurance companies operating in the country confirmed that they are facing real difficulties in order to comply with the new financial instructions, which have set a maximum of 30% in real estate investment. The same maximum applies to stocks. This compares with a maximum of 20% in shareholding in listed and unlisted companies in the financial markets outside the country. Therefore, insurers asked for the regulations to be implemented “gradually” or to apply them exclusively on new insurers.
Moreover, they said that a large number of large insurance companies operating in the country have stock and real estate portfolios, which were accumulated over the past two decades according to the previously allowed percentages, which allowed around 75% of investments in real estate. They indicated the difficulty in decreasing this type of investment to 30% of assets within 3 years only, which is the period given for companies to fix their situation.
Source: Al Ittihad