5.6 billion dirhams increase in the assets of the insurance sector in the UAE during 2023
Abu Dhabi, April 7 / WAM / The total assets of the insurance sector in the country rose to 125.7 billion dirhams at the end of the fourth quarter of last year 2023, compared to about 120.1 billion dirhams at the end of 2022, in an indication of the pace of growth of the sector, which reflects a strong and dynamic market.
Statistics issued by the UAE Central Bank showed that the insurance sector’s assets increased during the past year by 4.7 percent, or the equivalent of 5.6 billion dirhams. The return on average assets rose to 0.3 percent by the end of 2023, compared to 0.1 percent by the end of 2022.
According to the Central Bank, the insurance sector in the country remained well capitalized in terms of early warning rates and risk assessment, and the ratio of self-funds to the minimum capital requirements increased to 335.7 percent in the fourth quarter of 2023, compared to 309.3 percent at the end of 2022. This is due to the increase in self-qualified funds to meet the minimum capital requirements that insurance companies must provide to meet solvency requirements, which includes accepted assets less liabilities.
It is noteworthy that the insurance sector in the UAE maintained its first place in terms of total insurance premiums written at the level of Arab insurance markets in the year 2021.
The sector continued to advance in ranking in terms of gross written insurance premiums, reaching 37th place globally in 2021, compared to 38th place in 2020, according to the global Sigma publications issued by the Swiss Reinsurance Institute.
The insurance market in the UAE is expected to grow at a compound annual rate of 4.9 percent to reach $17.9 billion in 2028 compared to $14.1 billion in 2023, according to Alpen Capital, a banking and investment consultancy. This growth will be driven by improved macroeconomic conditions and the expansion of… Compulsory health insurance coverage extends to the Northern Emirates, along with the development of large-scale infrastructure projects.
Alpen Capital also expects the value of written insurance premiums in the UAE to reach $14.8 billion (54.4 billion dirhams) in the year 2024, compared to $14.1 billion (51.8 billion dirhams) during the past year 2023, reflecting an annual growth of 5%. percent.
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