New S&P Scale Reveals First Gulf Ratings

Standard & Poor’s has assigned its first regional credit ratings for the GCC after launching a new assessment scale in February. The outlook for UAE-based Emirates Insurance Co is set at gcAA under S&P’s recently-launched scale, while Bahrain National Insurance has secured the same rating. Both companies have a stable BBB+ international rating. The ratings reflect both companies’ strong operating performance, capitalisation, investments and liquidity, S&P said.

UAE Records Biggest Three-Year Takaful Rise

The UAE and India were the biggest growth markets for Islamic insurance during a three-year period, an Ernst & Young report has revealed. A 135 per cent compound annual growth rate for takaful was registered across the emirates and India between 2005 and 2008 – 100 per cent more than the 35 per cent increase experienced in Indonesia. Meanwhile, the Gulf recorded 45 per cent growth during the same period. According to the report, takaful contributions will exceed $8.9bn this year compared to $5.3bn in 2008.

Credit Rating Boost For Oman Insurance

Oman Insurance Company has received a credit ratings boost reflecting its independence from parent company Mashreq bank. Credit assessment agency Standard & Poor’s (S&P’s) increased the insurer’s rating to BBB+ after monitoring its stability and financial performance since November 2009. Mashreq bank was also put on S&P’s credit watch at the same time in response to Dubai’s financial uncertainty.

A New Era Of Consolidation?

RSA’s acquisition of Al-Ahlia, Oman’s third-largest insurer, may signal the start of a new wave of long-sought-after M&A activity in the Middle East insurance sector.

Insurers Honoured At Industry Awards

AXA Insurance took the plaudits last night after picking up two accolades at the Middle East Insurance Awards. The global company was named general insurer of the year and medical insurer of the year during an awards dinner at the Westin Hotel in Dubai. Other winners on the night included Daman, which secured the corporate social responsibility prize, Friends Provident (life insurer of the year) and Gulf Re (reinsurer of the year).

Insurers Key To Raising Interest In UAE Policies

A collective failure to educate people about insurance products is hampering penetration levels in the UAE, according to industry experts. Karl Gray, head of personal lines for RSA Middle East, told delegates at Insurex Conference 2010 in Dubai that many of the country’s expatriate population were from country’s where insurance uptake was relatively low. “I have been in the UAE for six years and the traditional view is penetration is very poor here,” he said. “But one thing we have to take into account is the demographics of the UAE.

Daman Made Profit In 2009, CEO

The chief executive of National Health Insurance Company (Daman) has dismissed speculation that the company failed to hit profit in 2009. When addressing delegates at insurance industry conference Insurex in Dubai, Dr Michael Bitzer insisted Daman had ended last year on a sound financial footing. “We are profitable,” he said. “There are always rumours in the market that the heart is bleeding and we pay too much for claims. I cannot publish our results but we are profitable and stable.

UAE Gross Premiums Hit AED9.9bn In 2009

Gross premiums for UAE insurance companies increased slightly in 2009 compared to the previous year, a Standard and Poor’s study has found. The ratings agency revealed that insurers raked in AED9.9bn last year, a 5 per cent rise from AED9.4bn 12 months earlier. Dubai accounted for 47 per cent of total premiums, while Abu Dhabi and the other emirates claimed 38 per cent and 15 per cent respectively.

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