The UAE’s insurance sector experienced growth in the first quarter of 2024, as highlighted in the Central Bank’s quarterly review report. A total of 60 licensed insurance companies, including traditional, national Takaful, and foreign companies, operated in the country during this period. Additionally, the number of insurance-related professions increased to 500.
Gross written premiums for the first quarter of 2024 saw an impressive increase of 18.5% annually compared to the same period in 2023. This was driven by a rise in property and liability insurance premiums by 24.6%, as well as an increase in health insurance and insurance of persons and funds. Total claims paid for various insurance plans also increased by 18.3% year over year, reaching 8.4 billion dirhams.
Technical allocations for all types of insurance also increased by 6.9% on an annual basis to 78.8 billion dirhams in the first quarter of 2024. The sector’s assets invested reached a total of 72.2 billion dirhams with a retention rate of written premiums at approximately 50%.
The report notes that the UAE’s insurance sector remains well-capitalized, with the ratio of private funds to minimum capital requirements increasing to an impressive level at approximately 376.9% during the first quarter of 2024. Furthermore, profitability metrics showed improvements with net gross profit to net written premiums increasing to around eight percent and return on average assets rising to around six percent during this period
