By: Mahmoud Gamal
Dubai – Mubasher: UAE-listed insurance companies swung to profits in 2016, spurred by higher revenues and a new government decision, amid a positive outlook for the sector.
A total of 29 listed insurers posted profits of AED 1.15 billion ($313.04 million) in 2016, against losses of AED 117.2 million ($31.90 million) in 2015.
The companies’ annual results were backed by the rise of revenues after owners tended to insure their vehicles before the end of last year to avoid higher rates that will follow the application of newly introduced tariffs from the UAE Insurance Authority.
The insurance companies benefitted financially from some government decisions like obliging everyone on a Dubai residency visa to have compliant medical insurance, capital market analyst Ahmed Ismail told Mubasher.
The UAE-listed insurance companies generated revenues of AED 19.5 billion in 2016, up 11% from AED 17.6 billion in 2015.
Oman Insurance Company (OIC) recorded the highest revenues among its peers after generating AED 3.56 billion, followed by Orient Insurance Company at AED 2.6 billion, and Abu Dhabi National Insurance Company (ADNIC) at AED 2.38 billion.
On the other hand, six listed companies incurred losses in 2016 topped by Islamic Arab Insurance Company (SALAMA) which suffered AED 179.9 million losses, followed by Al Khazna Insurance Company (AKIC) and Dubai Islamic Insurance and Reinsurance Co. (AMAN) at AED 82 million and AED 37 million, respectively.
Translated by: Julian Nabil
