UAE insurance assets hit Dh164.9b as premiums surge 15%

Dubai: The UAE insurance industry's total assets climbed to Dh164.9 billion in 2025 as premiums, claims and profits increased and mandatory health insurance helped expand the number of policies across the country.

Total assets rose 6.1% from Dh155.5 billion in 2024, according to the Central Bank of the UAE's annual statistical report on insurance activity.

Gross written premiums increased 14.9% to Dh74.8 billion from Dh65.1 billion, while total profits generated by insurance companies jumped to Dh4 billion from Dh2.6 billion a year earlier. That represents an increase of about 54%.

The industry's investment portfolio also remained substantial. Invested assets stood at Dh96.4 billion, equivalent to 58.4% of total insurance-sector assets.

The figures show growth across most of the industry's main financial indicators during 2025, including its balance sheet, premium income, claims and technical provisions.

Total claims paid by insurers increased 11% to Dh46.2 billion during the year.

Technical provisions rose 4.4% to Dh96.3 billion. These are reserves maintained by insurers against their obligations to policyholders, including expected future claims.

Premium income therefore grew faster than paid claims during 2025, with gross written premiums increasing 14.9% compared with the 11% rise in claims.

Insurers also retained a greater share of the risks they underwrote.

The premium retention ratio increased to 56% from 54.9% in 2024. The measure represents the proportion of written premiums retained by insurers after accounting for premiums ceded to reinsurers.

The industry's capital position remained well above its minimum requirement. Available capital stood at 455% of the minimum required level, according to the Central Bank report.

The number of active insurance policies reached 17.3 million in 2025, reflecting demand across health and other insurance products.

Health insurance recorded one of the biggest changes during the year, with the number of policies rising 26.1% following the implementation of the mandatory basic health insurance scheme.

The expansion of compulsory health coverage increased the number of people required to hold insurance, widening the addressable market for health insurers.

Insurance density reached about Dh6,500 per capita in 2025. Insurance density measures the amount of insurance premiums relative to the population and provides an indication of the level of insurance coverage within a market.

The expansion in policy numbers came as the UAE insurance industry continued to include a relatively broad range of companies and supporting businesses.

There were 58 insurance companies operating in the UAE, while the number of insurance-related professions stood at 515, according to the report.

The industry's Dh96.4 billion investment portfolio means insurers also represent a significant pool of institutional capital alongside their primary role of underwriting risks.

Invested assets accounted for nearly three-fifths of the sector's Dh164.9 billion balance sheet at the end of the period.

At the same time, the Dh96.3 billion held in technical provisions and capital equivalent to 455% of the minimum requirement provide indicators of the resources maintained against insurance liabilities and regulatory capital requirements.

The combination of higher premiums and profits, an expanding asset base and increased policy numbers marked another year of growth for the sector.

Compared with 2024, insurers ended 2025 with Dh9.4 billion more in total assets and Dh9.7 billion more in gross written premiums. Paid claims increased by about Dh4.6 billion based on the reported annual growth rate, while industry profits were Dh1.4 billion higher.

The increase in health insurance coverage was also significant for the structure of the market. With health policies rising 26.1%, mandatory coverage contributed to expanding the industry's customer base rather than growth being limited to higher premium values on existing business.

The Central Bank data show that this expansion occurred while insurers maintained capital substantially above the required minimum and increased the proportion of premiums retained within the domestic insurance industry.