The UAE insurance industry continued its recovery path after the stress scenario of the unprecedented April 2024 rains, as insurers’ net profit jumped 54 per cent to Dh2 billion in the first half of 2025, according to Badri Management Consultancy.

The increase in profitability was supported by sustained premium rate increases and improved risk‐based pricing.

Industry insurance revenue grew by 19 per cent, reaching Dh24.2 billion in the first half of 2025, compared to Dh20.3 billion in the same period last year. This reflects the continuation of favourable underwriting conditions across major business lines, particularly motor and medical.

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

In April last year, unprecedented rains caused huge losses to UAE insurance companies in terms of motor and property damage. It is estimated that the losses ran into billions of dirhams. To cope with this challenge, insurers increased premiums to offset the losses.

According to Badri, the leading five companies continued to consolidate their positions, accounting for Dh1.3 billion of the overall insurance service result — up 31 per cent from the prior year. This increasing concentration underlines the growing importance of scale and operational efficiency in the UAE market.

Hatim Maskawala, managing director of Badri Management Consultancy, said there has been pressure on insurance companies for not meeting solvency requirements, as some companies recently announced increases in capital.

“Looking ahead, gradual rate improvements coupled with the Central Bank of the UAE’s enhanced market oversight are expected to continue supporting technical margins and discouraging underpriced policies. However, insurers need to remain cautious of potential rises in reinsurance costs and deferred impacts of treaty renewals. With a greater proportion of profitability stemming from insurance services, the industry’s long-term sustainability will increasingly depend on maintaining underwriting discipline and strengthening claims management practices,” added Maskawala.

Hatim Maskawala

Some of the insurance companies that reported losses in their net insurance results managed to mitigate the impact through investment income. In total, six out of 26 companies reported negative insurance results. Of these, five still generated a net profit.

Union Insurance Company announced a 76 per cent increase in net profit for the first half of 2025 compared to the same period last year, reaching Dh22.7 million, driven by excellent underwriting results, cost efficiencies, and an increase in investment revenue. Net underwriting results also increased by 93 per cent, reaching Dh11.07 million in H1 2025 compared to Dh5.7 million in the first half of 2024.

The company’s solvency reached 170 per cent in H1 2025, compared to 143 per cent reported for the year 2024 — exceeding regulatory requirements.

Abu Dhabi National Insurance Company (Adnic) reported a net profit before tax of Dh261.2 million, an increase of 16.5 per cent year-on-year, driven by solid contributions across all core segments.

It recorded gross written premiums of Dh5.539 billion, marking a 25.7 per cent year-on-year increase.

Charalampos Mylonas, CEO of Adnic, attributed the strong results to disciplined cost management and forward-looking innovation initiatives, enabling the firm to adapt to evolving market conditions and seize new opportunities.

The Dubai-listed Takaful provider Salama posted a net profit of Dh8.25 million during January–June 2025, driven by Dh7.86 million profit in Q2 2025 — a substantial increase from Dh2.95 million in Q2 2024. Takaful revenue was recorded at Dh515.36 million in the first six months of 2025, compared to Dh528.59 million in the same period of 2024.