UAE - Earnings and regulatory pressures on the rise
Wednesday, 12 09 2015, Category: Insurance and Reinsurance, Country: U.A.E
Despite good premium growth, listed insurance companies in the United Arab Emirates (UAE) are showing further earnings strain so far this year, according to Standard & Poor's (S&P).
The firm’s report, UAE Insurance Market: Earnings And Regulatory Pressures Are On The Rise, found that gross premiums grew 9 percent year-on-year to UAE dirham (AED) 13.5 billion (or $3.7 billion) in the first nine months of 2015, in line with S&P’s expectations set earlier this year.
S&P said that the growing maturity and expansion of the Dubai compulsory health scheme, launched in the last quarter of 2014, was one reason for the increase, but others were the favourable economic and political climate.
The 29 listed companies recorded an aggregate net underwriting deficit in the first nine months, representing a 103 percent net combined (loss and expense) ratio, according to S&P.
Source: Intelligent Insurer