2.5 billion dirhams profits for the year 2019 ... with a growth of 29%

Insurance companies pay 350 million dirhams of Corona compensation by the end of June

The total assets of all insurance companies rose to 112.6 billion dirhams at the end of 2019. Archives

The annual report of the insurance sector activity in the UAE market showed that insurance companies in the state paid claims related to the Coronavirus, totaling about 350 million dirhams until the end of June 2020, indicating that insurance companies operating in the country achieved positive net results for the year 2019, as the total net Its profits for the year 2019 totaled 2.584 billion dirhams, compared to 1.997 billion dirhams for the year 2018, an increase of 29%.

According to the report, of which Emirates Today obtained a copy, the volume of written premiums for all insurance branches reached a total of 44.02 billion dirhams, while the volume of funds invested in the sector amounted to 68.962 billion dirhams, 39% of which is concentrated in stocks and bonds, and 27. 7% in deposits.

Written premiums

In detail, the Minister of Economy and Chairman of the Board of Directors of the Insurance Authority, Abdullah bin Touq Al-Marri, said that «the volume of premiums written for all branches of insurance reached a total of 44.02 billion dirhams, with an increase of 1% compared to 2018, which confirms the importance of this sector and its vital role Regarding the national economy, and the volume of funds invested in it, which amounted to 68.96 billion dirhams at the end of 2019, 39% of which is concentrated in stocks and bonds, and 27.7% in deposits. Shareholders' equity in national insurance companies reached a total of 21.435 billion dirhams. .

Al-Marri added, in the introduction to the annual report on the activity of the insurance sector in the UAE, that "the opportunities for growth in the size of the insurance sector in the country are great, as the UAE insurance market is expected to witness a significant increase in the coming years, as a result of sustainable economic development." During the year 2019, to complete the issuance of legislation regulating the sector.

Initial indicators

According to the report, preliminary indications indicated that the state's insurance companies had paid claims related to the Coronavirus, totaling about 350 million dirhams, until the end of June 2020, indicating that they were continuing to implement the economic recovery plan and stimulus packages for the post-"Covid-19" phase, in order to enhance the growth of The insurance sector in the UAE.

The total premiums written in all branches of property and liability insurance reached a total of 15.581 billion dirhams, of which the share of national companies was 12.233 billion dirhams, or 78.5%, and the share of foreign companies was 3.348 billion dirhams, representing 21.5%.

The total premiums written in all branches of people insurance and fund formation operations amounted to 9.069 billion dirhams, the share of national companies of which 2.284 billion dirhams, or 25.2%, and the share of foreign companies of which 6.786 billion dirhams, or 74.8%.

While the total premiums written in the health insurance branch amounted to 19.369 billion dirhams, the share of national companies, of which 14.52 billion dirhams, 75%, and the share of foreign companies, of which 4.848 billion dirhams, or 25%.

The share of national companies in total written premiums was 66%, with total written premiums amounting to 29.038 billion dirhams, while the share of foreign companies reached 34%, with total written premiums amounting to 14.983 billion dirhams.

According to the report, the general rate of retention of premiums for the insurance sector in the state for the year 2019 was 59.4%, compared with 62.8% for the year 2018. The value of paid claims reached 16.5 billion dirhams for all branches of insurance for national and foreign companies, and the claims incurred reached about 20.4 billion. AED at the end of 2019.

The total technical allocations in the sector for the year 2019 amounted to a total of 65.974 billion dirhams, compared to a value of 61.065 billion dirhams for the year 2018, with an increase of 4.9 billion dirhams, by 8%.

Takaful insurance

The total premiums written by all Takaful insurance companies operating in the country for the year 2019 amounted to a total of 4.594 billion dirhams, compared to 4.425 billion dirhams for the year 2018, an increase of 169 million dirhams, an increase of 3.8%.

The percentage of total written premiums by all Takaful insurance companies operating in the country for the year 2019 to the total premiums written by national conventional insurance companies was 15.8%, while the percentage of total premiums written by all Takaful insurance companies operating in the country for the year 2019 reached 15.8%. The total premiums written by all insurance companies operating in the sector, at a rate of 10.4%.

According to the report, the gross income statement for the insurance sector in the state showed that insurance companies operating in the country achieved positive net results for the year 2019, as the total net profits of all insurance companies operating in the country for the year 2019 amounted to a total of 2.584 billion dirhams, compared with 1.997 billion dirhams. For the year 2018, with an increase of 587 million dirhams, by 29%, the share of national companies from these profits reached 67%, and the share of foreign companies 33%.

The report stated that the total assets of all insurance companies operating in the sector increased at the end of 2019 to 112.6 billion dirhams, the share of national companies of which 59%, and an increase of 7.3 billion dirhams, and by 6.9% compared to 2018.

In terms of liabilities, the total liabilities of all insurance companies operating in the sector increased, at the end of 2019, to 86.127 billion dirhams, of which the share of national companies was 52.3%, and an increase of 5.298 billion dirhams, or 6.6%.

The total property rights of all insurance companies operating in the sector increased, at the end of 2019, to reach 26.432 billion dirhams, of which the share of national companies was 21.435 billion dirhams.

1134 citizens

The total number of employees of insurance companies, of various nationalities, at the end of 2019, reached a total of 10 thousand and 134 employees, with the number of citizens, of whom 1134 were citizens, or 11.2%.

While the total number of citizens in specialized technical professions reached 696 citizens, which represents more than 61% of the total number of employed citizens, and this reflects the success of the Emiratisation strategy in attracting citizens to the technical professions in insurance.

Insurance complaints

The annual report on the activity of the insurance sector confirmed that in 2019, 8,365 complaints were received, and 8,359 complaints were resolved, with a rate of 99.9%, 72.3% of them in the automobile sector at a rate of 6,050 complaints, and 765 inquiries were received through the inquiries system, and 100% were answered. %.

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