UAE Insurers Record 14% Revenue Growth Despite March Flood Losses

The UAE’s insurance industry continued to expand during the first half of 2026, even as insurers dealt with the financial impact of severe flooding that affected the country in March.

 The 27 listed insurance companies recorded a 14 per cent increase in insurance revenue, reaching Dh28 billion, compared with Dh24.6 billion during the same period in 2025.

The results indicate that the sector maintained its growth momentum despite the costs associated with flood-related claims and other operational challenges.

Insurers also reported improvements in technical performance and overall profitability.

UAE Insurance Revenue Rises During H1 2026

According to first-half industry data, insurance revenue increased by Dh3.4 billion compared with the previous year. 

The five largest insurers generated Dh18.8 billion in revenue, representing a 12 per cent increase. 

Meanwhile, mid-sized and smaller insurance companies recorded stronger growth of 19 per cent, reaching Dh9.2 billion.

Insurance Service Results Improve

Insurance service results, which reflect the technical performance of insurance operations, increased by 13 per cent to Dh1.8 billion from Dh1.6 billion in H1 2025.

The five largest companies recorded a 9 per cent increase, reaching Dh1.37 billion.

The data suggests that technical performance improved across the sector, although underwriting pressure remains concentrated among certain companies.

March Floods Continue to Affect Insurance Companies

Heavy rain and thunderstorms affected several parts of the UAE in March 2026, resulting in flooding, road closures and temporary disruptions to transport services.

The financial effects continued into the second quarter, including additional costs associated with reinstatement premiums and the recognition of claims.

Despite these challenges, the sector continued to report revenue growth during the first six months of the year.

Profit Before Tax Increases by 13 Per Cent

Profit before tax across the 27 listed insurers rose by 13 per cent to Dh2.4 billion during H1 2026, compared with Dh2.1 billion in the same period of the previous year.

The five largest insurance companies contributed Dh1.8 billion, recording an 11 per cent increase.

Other insurers reported stronger percentage growth, with combined profit before tax rising by 20 per cent to Dh665 million.

The results highlight differences in growth rates between major insurance providers and smaller companies operating in the UAE market.

Investment Income Also Records Growth

Investment income increased by 13 per cent to Dh1.4 billion during the first half of 2026.

However, the performance varied between groups of insurers.

The five largest companies recorded a 26 per cent increase in investment income, while the remaining insurers experienced a 5 per cent decline.

These differences demonstrate that investment performance was uneven across the sector, even as total industry investment income increased.

Takaful Companies Report Stronger Growth

Takaful insurance providers continued to record strong growth during the reporting period.

Although Takaful companies represented approximately 10 per cent of the listed insurance sector’s revenue, they recorded a 16 per cent increase in revenue.

Their profits grew by 51 per cent, compared with 10 per cent growth among conventional insurers. 

Takaful companies continue to form a smaller part of the overall market, but their first-half results reflected significant growth in both revenue and profitability.

Insurance Companies Focus on Sustainable Growth

Insurers are being encouraged to maintain disciplined underwriting practices and effective claims management. 

The industry’s outlook will depend on how insurers manage claims, pricing decisions, capital requirements and changing operating expenses during the remainder of 2026.

UAE Insurance Sector Enters Second Half of 2026

The UAE insurance industry entered the second half of 2026 with higher revenue, improved insurance service results and increased profit before tax.

Future performance will depend on the industry’s ability to manage risks, maintain solvency and control costs while continuing to provide insurance services across the UAE.