S&P removes ABNIC from creditwatch negative, but lowers rating

Standard & Poor’s has removed UAE insurer Al Buhaira National Insurance Company from creditwatch negative but downgraded the firm’s rating.

QIC to set up life and medical subsidiary

Qatar Insurance Company is setting up a new life and medical insurance subsidiary, according to press reports. The new venture is expected to open by the end of the year.

Salama Eyes Further UAE Growth

Salama Islamic Arab Insurance has opened two new branches in the UAE as part of a “major” Middle East expansion drive, the company revealed on Tuesday. The Islamic insurance provider said demand for Takaful products had prompted an increase in branches across the emirates from four to six. Dr Saleh Malaikah, vice chairman and CEO of Salama, confirmed that a further two would be added before year-end.

GCC Growth Hampered By Low Populations

Low population numbers in GCC countries is restricting the scale of growth throughout the region’s insurance markets, an A.M Best Co report has claimed. The credit rating agency also said “fierce” competition among local insurers was hampering growth in some segments. “Foreign insurers and reinsurers are aware of the opportunities the GCC offers in comparison with the West’s stagnant insurance markets. However, competition, particularly among local insurers, remains one of the biggest challenges to companies operating within the GCC,” said Yvette Essen, head of market analysis for A.M. Best’s global financial services division.

Qatari Insurers Announce Q1 2010 Results

Opening quarter figures reveal Qatari insurers have enjoyed mixed financial fortunes since the turn of year. Some have reported healthy profit increases spurred by rising demand for insurance. Others, however, will be hoping for better results in Q2 2010 after posting slight yearly declines in premiums compared to last year’s opening quarter.
From January to March this year, Doha Insurance Company generated QR18.4 million net profits compared to QR6.4 million from the corresponding period in 2009.

Australia Seeks Advice On Islamic Finance

Statesman arrives in Abu Dhabi to discuss Sharia’a-compliant finance. Australian assistant treasurer Nick Sherry has arrived in the Middle East to learn more about Islamic finance and insurance products as his government prepares to introduce the industry back home. Sherry is holding talks with UAE government officials, financial institutes and banks in Abu Dhabi during his visit.

Chedid Re To Launch In Saudi

Chedid Re is launching operations in Riyadh to capitalise on Saudi Arabia’s rapidly growing insurance industry, the company announced on Tuesday. The company said it had secured a licence from the Saudi Arabian Monetary Agency (SAMA) to provide reinsurance brokerage services across the Kingdom. Saudi Arabia has one of the largest insurance markets in the Middle East, with the country’s population expected to reach 45 million by 2020.

Credit Agency Gives Tawuniya ‘A’ Rating

Tawuniya/The Company for Cooperative Insurance has secured an ‘A’ rating from Standard & Poor’s after maintaining its “market leading position”. The credit rating agency said the company was still the leading player in Saudi, despite strong competition from rival insurers. Standard & Poor’s (S&P) added that Tawuniya’s strong underwriting performance contributed to its rating. But concerns about the company’s capitalisation were raised in S&P’s ratings report.

Aman Reports 69% Q1 Profit Surge

Dubai Islamic Insurance & Reinsurance (Aman) has seen its first quarter profit for 2010 rise 69 per cent compared to the same period last year. The company generated AED10.2 million, a significant increase from the AED6 million registered in 2009. Operating profit increased 54 per cent during the same period to AED4.6 million, while Aman’s premiums climbed 10 per cent to AED86.4 million.

Egypt Shelves State Medical Insurance Bill

No timeframe has been given for when Egypt will introduce its medical insurance bill after recently shelving the proposal due to limited funds. According to media reports, a projected EGP170 million deficit in the government’s 2010 medical budget 2010 has hit plans to raise EGP17bn (US$3bn) for the first phase of the bill. It is understood the government will not discuss the medical bill during its latest session.

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