Al Sagr National Insurance Company swung to a loss last year due to lower investment income, the Dubai-based insurer said.
Al Sagr posted a net loss of Dh105 million versus a net profit of Dh38.8m in 2014, as the industry struggles to overcome competitive pressures.
The net investments loss reached Dh121.3m compared to a net profit of Dh28.3m a year earlier. Gross premiums fell 1.3 per cent to Dh384.7m.
Net underwriting profit rose 28.4 per cent to Dh65.6m from Dh51.1m a year earlier.
Many insurers in the UAE have suffered investment losses because of their concentration of assets in the volatile equity and real estate markets, which have taken a beating.
The Insurance Authority issued new regulations in February last year that place restrictions on how companies can invest their money and how much exposure they can have to any particular asset class.
The rules also require companies to have an independent investment committee and include measures aimed at strengthening corporate governance, compliance and risk management.
In addition to investment losses, fierce competition in the heavily penetrated UAE insurance sector has led to premiums being slashed across many lines of cover, leaving some companies exposed. The aggregate results of listed insurers in the UAE shows that the industry swung to a loss last year after posting a profit in 2014.
Twenty-nine listed insurers, from a total of more than 60 in the country, made an aggregate loss of Dh106m last year versus a profit of Dh859m a year earlier, said the ratings agency AM Best.
It blamed the dismal results on price competition that led to a deterioration of underwriting performance, a weak investment environment and reserve requirements by the UAE’s insurance regulator.
dasaadi@thenational.ae
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Company profile: buybackbazaar.com
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Founder(s): Pishu Ganglani and Ricky Husaini
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Sector: FinTech, micro finance
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5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; 5.30pm: Maiden (PA) Dh80,000 (T) 1,400m
6pm: Handicap (PA) Dh80,000 (T) 1,400m; 6.30pm: Handicap (PA) Dh80,000 (T) 1,200m
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Director:+Lee+Isaac+Chung
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From Europe to the Middle East, economic success brings wealth - and lifestyle diseases
A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.
One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait, Qatar and Oman – and second on the list in Bahrain.
In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.
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And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.
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Company name: Silkhaus
Started: 2021
Founders: Aahan Bhojani and Ashmin Varma
Based: Dubai, UAE
Industry: Property technology
Funding: $7.75 million
Investors: Nuwa Capital, VentureSouq, Nordstar, Global Founders Capital, Yuj Ventures and Whiteboard Capital