UAE, GCC Insurers' Profits Rise In Q1 2026 29 Regional Firms Report Losses

2026-05-31 02:32:15

(MENAFN- Khaleej Times) The UAE and Gulf Cooperation Council (GCC) insurance firms started 2026 with a steady growth in profits and revenues in the first quarter of this year.

According to Badri Management Consultancy, the UAE listed firms' net profits rose nine per cent year-on-year in the first quarter of 2026 to Dh1.1 billion, up from Dh1 billion in the same period last year.

Recommended For You

The top five UAE insurers contributed Dh806 million, a growth of seven per cent, and other companies delivered stronger relative growth of 18 per cent, reaching Dh250 million.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Revenue grew 11 per cent to Dh13.4 billion during January-March 2026, up from Dh12.1 billion in the same period last year as the top five companies generated Dh9.1 billion – an increase of 10 per cent.

The other UAE listed firms saw their revenues collectively reaching Dh4.3 billion, an increase of 13 per cent, reflecting continued momentum among mid-sized players.

Badri data showed that insurance service results improved 17 per cent to Dh945 million as against Dh806 million, driven notably by a strong turnaround among the mid-sized companies, whose combined service results grew from Dh178 million to Dh295 million, registering a growth of 66 per cent.

The insurance service result is an accounting metric defined by the IFRS 17 accounting standard that measures the core profitability of an insurer's underwriting activities. It separates an insurer's operational underwriting profits from its investment earnings.

The top five companies, however, saw a more modest increase of three per cent to Dh649 million, suggesting some compression in technical margins at the upper end of the market.

Investment income, however, presented a notable headwind, with the weighted average declining 17 per cent, largely dragged by a sharp 75 per cent fall among mid-sized companies, from Dh153 million to Dh38 million. This underscores a growing reliance on core underwriting performance as a primary profit driver – a positive structural signal for the industry's long-term sustainability.

In the GCC, according to Insurance Monitor, 74 listed insurers' first-quarter results showed continued premium growth and profitability across most markets.

Net profit of the regional insurers rose 14.7 per cent to $714 million (Dh2.62 billion) while revenues rose 13.6 per cent to $10.8 billion (Dh39.63 billion). Of these, as many as 29 regional insurers reported losses or declines in profit during January–March 2026.

It added that the UAE continued to lead underwriting recovery following repricing actions implemented after the 2024 record rainfall losses, with the aggregate net combined ratio improving to 90.9 per cent despite lower investment income.

Looking ahead, Badri Management said the UAE insurance industry entered the second quarter of 2026 from a position of underlying strength, though increased vigilance is warranted amid rising reinsurance costs due to treaty renewal pressures and continued regulatory focus on capital adequacy and market discipline.

It added that companies with weaker solvency positions must prioritise capital remediation, while the broader market should continue to align premium growth with robust claims management and disciplined underwriting controls.