The UAE insurance sector is on a recovery trajectory following the April 2024 rains, with insurers seeing a 54% surge in net profit to Dh2 billion in H1 2025, as reported by Badri Management Consultancy.
This profitability boost is attributed to ongoing premium rate hikes and enhanced risk-based pricing strategies.
Insurance industry revenues soared by 19%, reaching Dh24.2 billion in H1 2025, up from Dh20.3 billion in the same period the previous year, highlighting the persistence of favorable underwriting conditions, especially in motor and medical sectors.
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In April of the previous year, the extraordinary rains led to significant motor and property losses for UAE insurers, amounting to billions of dirhams. Insurers raised premiums to mitigate these losses.
Badri reports that the top five companies strengthened their market share, contributing Dh1.3 billion to the total insurance service result, marking a 31% increase year-on-year. This trend underscores the critical role of scale and operational efficiency in the UAE market.
Hatim Maskawala, managing director of Badri Management Consultancy, noted pressure on insurers regarding solvency requirements, with some firms recently increasing their capital.
“Looking forward, gradual rate improvements and enhanced oversight by the UAE Central Bank are anticipated to bolster technical margins and prevent underpricing. However, insurers must remain vigilant about potential hikes in reinsurance costs and delayed treaty renewal impacts. With a larger portion of profits from insurance services, the sector’s sustainability will hinge on maintaining underwriting discipline and improving claims management,” Maskawala added.
Hatim Maskawala
Several insurers offset losses in net insurance results through investment income. Out of 26, six companies reported negative insurance outcomes, with five still achieving net profit.
Union Insurance Company’s net profit jumped 76% in H1 2025 compared to last year, reaching Dh22.7 million, driven by superior underwriting, cost efficiencies, and increased investment income. Net underwriting results rose 93% to Dh11.07 million in H1 2025, from Dh5.7 million in H1 2024.
The company’s solvency improved to 170% in H1 2025, surpassing the 143% reported in 2024 and exceeding regulatory standards.
Abu Dhabi National Insurance Company (Adnic) reported a pre-tax net profit of Dh261.2 million, up 16.5% year-on-year, thanks to robust performance across core segments.
It recorded gross written premiums of Dh5.539 billion, a 25.7% year-on-year rise.
Charalampos Mylonas, CEO of Adnic, credited disciplined cost management and proactive innovation for enabling adaptation to market changes and capitalizing on new opportunities.
Dubai-listed Takaful provider Salama posted a net profit of Dh8.25 million in January–June 2025, propelled by a Q2 2025 profit of Dh7.86 million, a significant increase from Dh2.95 million in Q2 2024. Takaful revenue reached Dh515.36 million in the first half of 2025, compared to Dh528.59 million in the same period of 2024.
