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Ins. providers had a good 2023: The ins. sector here at home saw net income rise to hit AED 2.5 bn in 2023, up 28% y-o-y, according to the Central Bank’s latest annual statistical report for the ins. sector (pdf). Growth in profitability was attributed to an increase in net investment income within the sector.
The volume of invested assets stood at AED 77.2 bn, up 8% y-o-y, comprising 59.2% of total assets. The real estate sector captured the most growth in investment during 2023, logging a 0.2% y-o-y increase to AED 4.4 bn. Equity and debt securities grew 10% y-o-y, and cash and deposits increased 12% y-o-y.
Gross written premiums in the UAE increased to AED 50.4 bn in 2023, up 14% y-o-y. Dubai comprised the bulk of premiums with a 61% share, while Abu Dhabi’s share was 27.7%. Meanwhile, in-country gross paid claims increased 14.2% y-o-y to AED 31.6 bn, with Dubai accounting for 60.7% of these claims and Abu Dhabi for 28.9%.
Written ins. policies jumped up 60% y-o-y to AED 15.6 mn in 2023, on the back of a 76.9% y-o-y increase in property and liability ins. policies, especially involuntary loss of employment ins. policies.
Dubai signed off on the largest share of policies during the year, comprising 59.9% of total written ins. policies, while neighboring Abu Dhabi accounted for 21%. Ras Al Khaimah (6.6%), Sharjah (4.58%), Fujairah (1%), and Ajman (0.5%) dominated smaller shares, while policies written outside the UAE made up 6.4%.
The UAE ranked second among Arab nations behind Saudi Arabia for gross written premiums during the year, according to statistics (pdf) from the Arab Monetary Fund. Arab ins. companies’ gross written premiums rose 9.2% y-o-y to USD 50.8 bn during the year, with non-life ins. premiums comprising the bulk of written premiums at 81.2%.
