Insurance companies’ Q1 profits rise to AED445 million

ABU DHABI — Insurance companies listed on ADX and DFM held decent profits of AED445 million for the Q1 2017, an increase of 44.5 percent over the same period last year.

The profits are an all-time-high for several years, reflecting the considerable growth recorded since the beginning of the year, according to a survey conducted by Emirates News Agency, WAM, over 29 companies listed on the country’s two major financial markets.

The surveyed companies’ market value amounted to AED11 billion by the first half of May, driven by a rise in the insurance sector’s stocks, with the total capital of the these companies ratcheting up to AED5.8 billion for the same period this.

The competitive insurance rates endorsed by the Insurance Authority effective January was a driving force behind the profit increase.

The net profit of 16 insurance companies listed on Abu Dhabi Securities Exchange, climbed to AED207 million during the first three months, a 20 percent increase over the same period last year, with the profits of 12 companies listed at Dubai Financial Market jumping to AED238 million, a 76.2 percent rise compared to same period 2016.

The Orient Insurance Co. was the best performer with AED147.4 million of Q1 profits followed by Abu Dhabi National Insurance Co.’s AED74 million net profits.

The increased profits, according to the survey, reflect the rebound made by the insurance sector after the losses sustained in the same period last year.

Source: Emirates News Agency

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