The UAE insurance sector growth showed strong momentum in the first quarter of 2025. Insurance claims rose 18.3% year-on-year, hitting Dh11 billion. Health insurance alone contributed Dh6 billion, over half of all claims.
According to the Central Bank of the UAE, property and liability claims stood at Dh4.5 billion. Meanwhile, insurance of persons and fund accumulation accounted for Dh0.5 billion.
Premium collections also increased significantly. Gross written premiums reached Dh23.9 billion, up 13.8% from the same period last year. This rise stemmed mainly from increased rates across all categories.
Health insurance premiums grew by 14.2%, showing the strongest expansion. Property and liability insurance followed with a 13.9% increase. Insurance of persons and fund accumulation premiums rose 11.1%, led by a rise in individual life insurance.
UAE insurers raised premiums after severe rains in March and April 2024. These storms caused extensive damage to vehicles and buildings. Analysts estimate nearly 100,000 vehicles and thousands of homes suffered losses.
Global agency S&P reported that insurers lost up to $2.5 billion (Dh9.175 billion) due to those rainstorms. The April 16 event was the heaviest recorded since 1949. Most losses stemmed from property damage, especially in Dubai and northern emirates.
Currently, 59 licensed insurance companies operate in the UAE. These include 23 traditional firms, 10 takaful companies, and 25 foreign branches. One foreign reinsurance branch is also active.
The UAE insurance sector growth reflects not only in claims but also in profits. Net profit reached Dh987 million, up Dh190 million from last year. That’s a 24% increase, driven by higher premiums and improved weather conditions.
Profitability ratios also improved. The net profit-to-net written premium ratio hit 7.3%. Return on average assets rose to 0.8% from 0.6% the previous year. This positive trend highlights how the UAE insurance sector growth remains resilient, even in the face of climate challenges.
