Takaful operators continue to gain traction in the United Arab Emirates (UAE) insurance market as the Takaful segment’s profitability has improved significantly in recent years, according to a new special report by AM Best. In its analysis of the preliminary disclosures of the nationally listed Takaful operators on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM), AM Best shows material improvements in overall performance, along with reasonable growth in gross written contributions (GWC). These improvements are in line with the increase in net earnings for the UAE market as a whole.
In the research, titled, “UAE Takaful Companies Catching Up with Conventional Peers,” AM Best notes in 2018, the listed insurers in the UAE generated combined gross written premiums (GWP) of AED 21.9 billion, of which the Takaful segment contributed AED 3.7 billion. A marginal decline of 0.5% in the conventional insurers’ GWP was offset by the Takaful segment’s GWC growth of 5.8%. Consequently, the market as a whole experienced modest growth of 0.5% in overall premium.
A full complimentary copy of this report is available via the following link:
Best’s Special Report: Takaful Insurance – Financial Review