The results of 30 insurance companies listed on the Dubai Financial Market and Abu Dhabi Securities Market showed 28 companies posting profits in the first quarter of 2019. Two companies reported losses.

The total profit of these companies amounted to AED 591.65 million, a growth of 5.5% compared to AED 560.94 million in the first quarter of 2018.

Insurance companies said that companies achieved positive results during the first quarter of this year on both the technical and investment levels, despite the challenges posed by price competition, pressures on capital markets and the benefit of improved working conditions and the regulatory environment.

Business results

The results of 30 companies listed on the Dubai Financial Market and the Abu Dhabi Securities Exchange showed 28 profits during the first quarter of 2019. Two companies reported losses.

Total profits of these companies reached AED 591.65 million, an increase of 5.5% compared to AED 560.94 million in the first quarter of 2018.

Among the insurance companies that made profits, 16 companies reported a profit growth of between 2.6% and 200%. While 12 insurance companies recorded a decline in profits at a rate of between 3% and 133%.

Make profits

Five insurance companies accounted for 60 per cent of total profits. Orient Insurance had the highest profits in terms of value after recording AED 162 million, a growth of 7.2 per cent over the same period last year, followed by Emirates Insurance Company AED 63.7 million, a growth of 40.6%. Oman Insurance Company posted a profit of AED 53.5 million, a growth of 63.1%. Abu Dhabi National Insurance Company posted a profit of AED 52.6 million, a decline of 44.7% compared to the same period last year. In 2018, followed by «Abu Dhabi National Takaful» which achieved a profit of 26.8 million dirhams, a growth rate of 15.5%.

Highest growth

Aman achieved the highest growth in the sector after a 200% increase in profits to AED 4.5 million, followed by Union Insurance, which rose 150% to AED 10.5 million. Which grew by 134.6% to AED 24.4 million.

Fidelity United was the only company to recover losses of AED 600 million in the first quarter of 2018, making profits for the first quarter of 2019 worth AED 200,000.

Takaful Emarat registered the largest decline in profits, reaching 84.57%, followed by ARIG (71.38%) and National Insurance Company (RAK), which declined 58.8%.

Positive results

"The financial results of the insurance companies in the UAE market during the first quarter of this year were generally positive," said Bassam Gilmairan, general manager of Al Wathba National Insurance Company. "Most of the companies performed well in the technical results related to insurance operations, With improved net profit levels of total written premiums.

He added that the technical results recorded by the insurance companies in the UAE market is one of the highest in the region, pointing out that the insurance companies have achieved good performance in general, taking advantage of improved working conditions and the regulatory environment.

He stressed the importance of companies being fully aware of the risks of competition and price burning, and the impact on their financial performance, which requires companies to consider their net profit away from the level of premiums that they managed to register. The results of the investment segment were affected during the first quarter, with the local markets continuing to be affected. However, at the beginning of the second quarter of this year, some shares returned and recorded better performance, and the investment results of insurance companies are expected to improve based on market conditions.

Technical Performance

The results of the insurance companies listed in the Dubai and Abu Dhabi financial markets during the first quarter of this year are positive, said Ramez Abuzaid, general manager of Dubai National Insurance and Reinsurance Company.

He added: "There is still pressure on technical results, due to competition, especially in the auto and medical insurance sectors," pointing out that the intensity of competition is a source of concern for all companies in the market.

He pointed out that the continued registration of positive results linked to the extent of stability in the market and the decline of competition.

Competitive factors

In the same vein, the CEO of Orient Insurance, Omar Al Ameen, said that the market competition affected the financial results of the insurance companies during the first quarter of this year, pointing out that the prices of some sectors reflected on the technical results.

He added that car insurance prices fell to levels before the introduction of the new vehicle insurance policy in early 2017, pointing to the improvement in profits related to the investment activities of companies.

Al-Amin expected the insurance sector to record stable results during the second quarter of the same year and the same period last year.

For the first quarter earnings, please click on this link.