After lacklustre 2014, UAE’s listed insurers set for strong recoveryMay 4 2015 by InsuranceAsia News Staff
Standard & Poor’s said in a report that listed insurers in the United Arab Emirates (UAE) are expected to recover strongly this year after posting their worst-ever underwriting performance in 2014.
The country’s insurance market, Standard & Poor’s said, is set to expand by 10% this year, thanks to the positive economic outlook for the UAE.
The positive outlook for UAE’s insurance market this year comes after the country’s 29 listed insurers posted a net underwriting deficit in 2014 due to a fiercely competitive market for high-volume medical and motor lines.
Twelve of the 29 UAE insurers reported combined ratios of more than 100% last year, with six conventional and six takaful.
Standard & Poor’s credit analyst Kevin Willis told Gulf News that UAE insurers offering high-volume medical and motor insurance are expected to stop reducing prices this year, which will cause earnings to start to recover by the end of 2015.
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The move aims to boost its takaful and general insurance brand within the region.
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The Insurance Commission has said that the country is not yet ready to introduce Islamic insurance.
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Firms have not been able to differentiate themselves adequately from conventional insurance companies.
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The company is splitting into two entities, one focused on family takaful and one on general takaful.