In Q1 2024, gross written premiums rose by 18.5% year-on-year to AED21.1 billion, according to the CBUAE report.

The Central Bank of the UAE (CBUAE) has announced that the UAE insurance sector continued to grow in Q1 2024, as reflected by the increase in gross written premiums.

In its Quarterly Economic Review for June 2024, CBUAE stated that the number of licensed insurance companies in the UAE remained at 60, comprising 23 traditional and 10 takaful national companies, and 27 foreign companies. The number of insurance-related professions increased to 500.

The Bank added that the gross written premiums increased by 18.5% year-on-year in Q1 2024 to AED 21.1 billion, mainly due to a rise in property and liability insurance premiums by 24.6% year-on-year, in health insurance premiums by 15.1% year-on-year, and in the insurance of persons and fund accumulation premiums by 15% year-on-year, primarily from a hike in group and individual life insurance premiums.

The report noted that gross paid claims of all types of insurance plans increased by 18.3% year-on-year to AED 8.4 billion in Q1 2024. This was mainly driven by the increase in claims paid in property and liability insurance by 47.1% year-on-year, and in insurance of persons and fund accumulation.

The total technical provisions of all types of insurance increased by 6.9% year-on-year to AED 78.8 billion in Q1 2024, compared to AED 73.7 billion in Q1 2023. The volume of invested assets of the insurance sector amounted to AED 72.2 billion (54.8% of total assets) in Q1 2024 compared to AED 70.5 billion (54.9% of total assets) in Q1 2023.

The retention ratio of written insurance premiums for all types of insurance was 50.2% (AED 10.6 billion) in Q1 2024, compared to 53.2% (AED 9.5 billion) in Q1 2023.

The report explained that "the UAE insurance sector remained well capitalized on aggregate," stating that the own funds to minimum capital requirement ratio increased to 376.9% in Q1 2024, compared to 340.6% in Q1 2023.

Also, the own funds to solvency capital requirement ratio reached 194.8% in Q1 2024 compared to 198% in Q1 2023, as a result of an increase in own funds eligible to meet solvency capital requirements. Finally, the own funds to minimum guarantee fund ratio decreased to 301.5% in Q1 2024 compared to 309.3% in Q1 2023.

In terms of profitability, the net total profit to net written premiums increased to 8.0% in Q1 2024, compared to 7.8% in Q1 2023. The return on average assets increased to 0.6% in Q1 2024 compared to the 0.5% in Q1 of the previous year.