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Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE: Higher premiums, no rains benefit insurance sector as profits jump to 24%
The UAE insurers' net profit increased by Dh190 million or 24 per cent to Dh987 million in the first quarter of 2025 compared to Dh797 million in the same period last year, due to increased premiums and the absence of heavy rains, which hit the country early last year, according to Badri Management Consultancy. "The first quarter of 2025 has remained bright and sunny for the UAE insurance industry. There was an absence of rains, which impacted profits slightly in the first quarter and heavily in the second quarter of 2024," said Hatim Maskawala, managing director at Badri Management Consultancy The UAE recorded heavy rains in the second week of March last year as the country recorded about 6 months of rain over two days, prompting work from home and remote learning due to flooding. This impacted the insurers as businesses and the automobile sector were hit during the heavy downpour. Following record rains last year, the UAE insurers raised motor premiums to combat the rising costs of damages. It is estimated that around 100,000 vehicles were damaged during the record rains in March and April. "The absence of rains coupled with rising premium rates has led to insurance revenue growing by 21 per cent in the first three months of 2025, reaching Dh11.9 billion versus Dh9.8 billion in the same period last year," he said. Maskawala added that the growth is expected to continue, driven by rising premiums both for motor and medical, the key lines impacting the net. Data showed that insurance service results for the analysed listed companies experienced a 70 per cent increase from Dh447 million to Dh762 million. The leading five companies recorded a 43 per cent increase collectively, moving from Dh440 million to Dh629 million during the same period last year. "The increasing concentration of revenue and profit among leading companies reflects a changing market dynamic, where scale and efficiency are key to sustainability and expansion. Going forward, the industry must align premium growth with stronger underwriting and better claims controls to maintain long-term profitability," added Maskawala. CBUAE's regulatory actions have been key in enhancing market discipline and curbing the sale of underpriced policies by financially weak insurers. Still, the industry must stay alert to increasing reinsurance costs and the lagging financial effects tied to some treaty arrangements.
Al Etihad
24-04-2025
- Business
- Al Etihad
Abu Dhabi Real Estate Centre records 34.5% growth in real estate transactions to Dh25.3bn+ in Q1 2025
24 Apr 2025 10:05 ABU DHABI (ALETIHAD)The Abu Dhabi Real Estate Centre, an affiliate of the Department of Municipalities and Transport – Abu Dhabi, has reported that total transaction value grew by 34.5 percent to Dh25.3 billion across 6,896 deals in the first quarter of 2025 in the emirate, compared to Dh18.82billion from 5,773 transactions in the same period of and sell transactions totalled Dh15.51 billion through 3,819 transactions, reflecting a 26.7 percent increase in value and an 11 percent rise in volume compared to the first quarter of 2024. Mortgage transactions also recorded strong growth, reaching Dh9.8 billion through 3,077 transactions — a 49 percent year-on-year Island was the leading area for real estate transactions, recording deals amounting to Dh5.6 billion. It was followed by Yas Island, with Dh3.6 billion, and Mohammed Bin Zayed City, with Dh2.1 billion. Al Reem Island and Al Hudayriyat Island recorded over Dh1 billion in report highlighted continued activity in Foreign Direct Investment (FDI), with 384 transactions valued at Dh1.582 billion concluded by investors from 68 nationalities — up from 58 nationalities during the same period last year. This demonstrates growing confidence in Abu Dhabi's real estate market, driven by regulatory policies and government initiatives that enhance its local and global Director-General of ADREC, Engineer Rashed Al Omaira, said, "ADREC continues to advance a more efficient, competitive, and sustainable real estate ecosystem, driven by digital transformation, reliable data, and continuous collaboration with strategic partners. These results highlight the strength of Abu Dhabi's property market and its enduring attractiveness as a regional and international hub for real estate investment. The notable growth in transaction value and volume, alongside the rise in foreign investment, underscores the effectiveness of our regulatory frameworks and reinforces investor confidence in the market." "We will continue to enhance our legislative and digital tools and promote transparency to establish a more flexible and sustainable real estate environment aligned with Abu Dhabi's long-term vision."
