Gross premiums written increased to AED 42 billion at the end of Q3 2023
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The Central Bank of the UAE (CBUAE) has said that the UAE insurance sector continued to grow in the third quarter of 2023, as reflected by the increase in the number of insurance policies in line with the increase in gross premiums written ( GWP).
In his report, CBUAE stated that as of the end of the third quarter of 2023, the number of licensed insurance companies in the UAE remained at 60. The sector was made up of 23 traditional domestic companies, 10 domestic takaful companies and 27 foreign companies. The number of insurance-related professions remained at 491 at the end of the third quarter of 2023.
GWP increased by 14.4 percent year-on-year (y-o-y) at the end of the third quarter of 2023 to AED 42 billion, mainly due to an increase in health insurance premiums of 22.6 percent year-on-year and an increase in Property and liability insurance premiums up 13.7 percent year-on-year.
Gross claims paid from all types of insurance plans increased by 23.5 percent year-on-year to AED 23.1 billion at the end of September 2023. This was mainly due to the increase in claims paid in property and liability by 9.6 percent, health insurance by 22 percent, and in personal insurance and accumulation of funds by 11.1 percent year-on-year.
The report added that total technical provisions of all types of insurance increased 9 percent year-on-year to AED 75 billion at the end of September 2023 compared to AED 68.8 billion a year ago.
The volume of invested assets of the insurance sector amounted to AED 74.4 billion (56.5 percent of total assets) at the end of the third quarter of 2023, compared to AED 72.2 billion (61.1 percent of assets totals) at the end of September 2022.
The retention rate of insurance premiums issued for all types of insurance reached 52.5 percent (or AED 22 billion) at the end of September 2023, compared to 51.2 percent (or 18 .8 billion AED) from the previous year.
The UAE insurance sector remained well capitalized in terms of early warning ratios.
CBUAE reported that the ratio between own funds and minimum required capital increased to 349.8 percent at the end of the third quarter of 2023, compared to 325 percent a year earlier, due to an increase in own funds eligible to meet the minimum capital requirements.
Similarly, the ratio of own funds to solvency capital increased to 207.3 percent at the end of September 2023, compared to 203.6 percent at the end of the third quarter of 2022, due to an increase in own funds eligible to meet solvency capital requirements.
Meanwhile, the ratio of own funds to minimum guarantee fund (MGF) reached 310.6 percent at the end of the third quarter of 2023, up from 323.1 percent at the end of September 2022, due to the MGF increased more than the increase in equity.
In terms of profitability, total net profit on net written premiums increased to 12.1 percent at the end of the third quarter of 2023, compared to 8.4 percent a year earlier.
The return on average assets increased to 0.6 percent at the end of September 2023, compared to 0.4 percent at the end of the third quarter of 2022.
News source: Emirates News Agency
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