UAE insurers report strong 2017 results
Monday, 02 26 2018, Category: Insurance and Reinsurance, Country: U.A.E
UAE insurers posted healthy top-line growth, improved operating profits and stronger shareholders’ equity in their 2017 financial results, according an analysis of the full-year results by Standard & Poor’s.
“Based on our analysis, we consider these improved results as a positive factor for the overall market,” said S&P Global Ratings credit analyst Sachin Sahni. “That said, we do not see any immediate ratings impact on the UAE insurers that we rate, and credit conditions for each insurer may vary according to their individual performance.”
Data from preliminary results show listed UAE insurers’ total revenues rose by 16 per cent to Dh22 billion in 2017, boosted by compulsory medical insurance and the Unified Motor Insurance Policy.
Actuarial pricing on motor and medical, actuarial verification of technical reserves, and minimum motor tariffs also boosted insurers’ performance, with the market’s underwriting profits up by 61 per cent and net income by 45 per cent.
“We believe the last phase of compulsory medical insurance in Dubai and the introduction of the Unified Motor Insurance Policy [with increased tariffs] have contributed toward this increase, which is line with our expectations,” Sahni.
Source: Gulf News