Stage Set For Insurance Industry Conference

Leading figures from the global insurance industry are set to converge in Bermuda next month to discuss the sector’s future and development. From March 14-16, The World Insurance Forum will focus on various topics, including the potential increase in overlap between insurance and capital markets, the impact of government involvement on risk assumption and China’s emergence as a dominant player. Other subjects up for debate include how new US and EU regulation may affect the industry, and the challenges CEOs face when operating against multiple frameworks.

UAE Insurers Could Post Motor Losses

Insurers in Dubai are expected to post motor insurance losses this year as lower premium rates arising from increased car cover competition hits the segment. Some insurance companies have even cancelled deals and given motor insurance policyholders their money back, a UAE newspaper reported. Omer Elamin, senior managing director of UAE insurance company Orient, said with motor insurance premiums falling on average by 30-40% last year, few companies would profit from this market in 2010.

Arab Orient Announces Re-brand

Arab Orient Insurance Company (Orient) has re-branded to keep pace with modernisation trends and maintain its market leading position, the company’s senior managing director has announced. Omer Elamin said the UAE insurance company, which covers property, marine, motor, engineering, life and energy insurance, will now trade as Orient. He described the re-branding as a significant milestone in the company’s 28-year history.

Dubai-Listed Companies Post Strong 2009 Results

Takaful companies listed in Dubai recovered last year to post healthy profits following a turbulent 2008 that saw revenues tumble during the financial crisis. Dubai Islamic Insurance & Reinsurance Co (Aman) reported a 162% growth in net profit to Dhs20.5 million – a significant turnaround from the previous year’s Dhs33.2 million loss. The company’s revenues climbed from Dhs492.9 million to Dhs495.8 million during the same period. Less positive was its net technical returns, which dropped 55.6% to Dhs30.2 million last year.

Dubai Set To Become Insurance Capital

Dubai is primed to take centre stage as the insurance capital of the Middle East, fuelled by demand from the oil and gas sector and steady growth in market resilient companies, a leading insurer has claimed. Marsh, a global insurance group, made the prediction following recent strong growth in this region. The company’s revenue climbed 28% in 2009 and by more than 20% in the previous two years. The purchase of HSBC Insurance Brokers, which Marsh agreed last December, will further increase the company’s Middle East and Asia presence.

Financial Crisis Hits Qatari Insurance Profits

Qatari insurance companies saw profits decline in 2009 as the economic downturn took its toll on the industry. Of the five insurers that recently released financial reports, only two registered growth while the remaining three suffered fiscal setbacks last year. Worst hit was Qatar General Insurance and Reinsurance which reported a huge QR140.2 million profit drop from QR226.2 to QR86 million between 2008 and 2009. The company’s gross and net premiums also suffered significant losses during the same period. Gross premium dropped to QR504.5 million from QR719.1 million, with net premium falling to QR209.4 million from QR241.7 million.

Gulf Insurance Set For 2010 Consolidation

The next 18 months will see “significant” conventional and Islamic deals among Gulf Arab insurance companies as they consolidate to tap huge growth potential, local lawyers have claimed. Speaking at the Islamic Banking and Finance Summit in Dubai, Peter Hodgins, partner at international law firm Clyde & Co, said deal activity in the region would be “significant in terms of jurisdiction and in terms of names”, Reuters reported.

Sukuk Demand Expected To Drop In 2010

Global sukuk issurance is expected to fall below 2009 levels as rising borrowing costs and the Dubai debt crisis hit market sentiment, a recent poll has claimed. Of the 12 Islamic bankers and industry experts questioned by Reuters, most believed last October’s estimate in a similar poll that issuance would exceed US$20 billion in sales this year was optimistic. They said the figure would more likely be between $15 billion and $17 billion.

BNH profits up 101% in 2009

Bahrain National Holding (BNH) Company has bucked the economic downturn after reporting strong profits for 2009. The Manama-based insurance provider registered a $10.8 million net profit, up 101% from the previous year, after receiving “strong support” from shareholders and clients.

Arig Back In Profit After Tough 2008

Arab Insurance Group (Arig) has completed a major financial turnaround by posting US$21.9 million profits in 2009 following a turbulent performance the previous year. In 2008, the reinsurance provider announced a $28.6 million loss at the height of the economic downturn. But the company has bounced back in line with a general recovery across global financial markets.

Next Page »