Today's Edition
MAYS IBRAHIM (ABU DHABI)
UAE-listed insurance companies continued to build momentum in the first half of 2026, with insurance revenue rising 14% year on year to Dh28 billion, according to a preliminary analysis by consultancy BADRI.
The industry’s net profit also increased 12% to Dh2.2 billion, compared with Dh2 billion in the same period last year, while insurance service results climbed 16% to Dh1.8 billion.
The report, which analysed 27 listed insurance companies, said growth was becoming increasingly broad-based, with mid-sized and smaller insurers outperforming their larger peers on revenue.
The five largest companies recorded a 12% increase in insurance revenue to Dh18.8 billion, while the remaining companies posted 19% growth to Dh9.2 billion.
Orient Insurance recorded the highest insurance revenue at Dh5.2 billion, up from Dh4.5 billion a year earlier. Dhafra Insurance posted the fastest revenue growth among the companies analysed, at 268%, while Al Sagr National Insurance recorded a 50% decline.
Daman recorded the highest insurance service result at Dh550 million, compared with Dh502 million in the first half of 2025.
The five largest insurers recorded a 9% increase in insurance service results to Dh1.37 billion, while the rest of the market recorded a 45% increase to Dh470 million.
Investment income rose 13% to Dh1.4 billion, with the five largest insurers accounting for much of the increase. Their investment income climbed 26% to Dh917 million, while the rest of the market recorded a 5% decline to Dh479 million.
Orient led the sector with Dh416 million in investment income, up from Dh355 million a year earlier. It also reported the highest net profit at Dh542 million, up from Dh502 million a year earlier.
The top five insurers collectively generated Dh1.58 billion in net profit, an increase of 9%, while other companies recorded a 19% increase to Dh610 million.
Underwriting performance remained broadly positive, with the weighted average combined ratio at 86%. Four of the 27 companies recorded combined ratios above 100%, indicating underwriting losses, while Dhafra recorded the lowest ratio at 25% and Sharjah Insurance the highest at about 162%.
“The industry enters the second half of the year from a position of underlying strength, supported by healthy revenue growth, improving technical performance and a favourable overall combined ratio,” the report said.
However, it flagged potential pressure from rising motor repair costs linked to geopolitical developments, as well as reinsurance costs following treaty renewals. Claims management, capital adequacy and pricing discipline will also remain key areas of focus, it said.
The report said insurers were currently avoiding aggressive price reductions in an effort to gain market share, and suggested that maintaining pricing discipline and improving portfolio management would be important for converting revenue growth into sustainable technical profitability.
The analysis is preliminary and is based on publicly available financial results at the time of compilation. BADRI said Al Khazna Insurance Company and Methaq Takaful Insurance were not included because their results had not been published when the report was compiled.
