After achieving profits of AED 859m in 2014, the markets saw a loss of AED 106m in 2015
National insurers in the United Arab Emirates have seen their profits “shattered”, according to AM Best.
After a robust performance in 2014, UAE national insurers listed on the Abu Dhabi Securities Exchange and Dubai Financial Market (DFM) have deteriorated significantly in 2015.
According to AM Best tk Michael Dunckley, “Many listed insurers in the UAE have suffered a triple hit from weak technical performance, reserve strengthening and investment losses in 2015. The impact of weak earnings have caused significant capital erosion for many market participants.”
Dunckley points out that, in light of the losses, the market is preparing to weather to storm, adding: “Despite this dramatic downturn in the market, some insurers have adopted prudent strategies to maintain their market profile in challenging market conditions, and have demonstrated strong underwriting discipline to produce sound operating results.”