Insurance Monitor

#gcc: Weaker underwriting performance slows down profit growth of listed insurers in 9M 2024, to 4.5% from 8.0% in H1 2024, despite higher investment income. The highlights: #uae: Losses increase for several insurers since H1 2024, notably Al Ain Ahlia Insurance Company (P.S.C) (up by AED 37mn) and Al Buhaira National Insurance Co. (up by AED 23mn) from motor and general lines of business. #ksa: Earnings for insurers outside the top three players have dropped by 28% owing to medical business. #oman: Total losses of USD 6mn registered in 9M 2024, despite a strong recovery from LIVA in Q3 following hefty weather-related losses in H1 2024. Such losses have caused solvency ratios to deteriorate further for several UAE-based insurers, with at least (8) eight in breach of regulatory requirements. Together, these insurers represent 12% of total insurance revenue in 9M 2024. Notably, Takaful Emarat-Insurance (P.S.C) anticipates increasing capital to AED 211mn by the close of the rights issue subscription period on 26 November 2024. In Saudi Arabia, SALAMA Cooperative Insurance Co. and Saudi Enaya Cooperative Insurance Co. await shareholder approval for proposed capital increases, with EGMs scheduled for late November 2024. At the same time, United Cooperative Assurance / UCA and GULF GENERAL COOPERATIVE INSURANCE CO. have canceled their capital increase plans, citing improved profitability and the potential merger with Gulf Union Al Ahlia, respectively. The Saudi market is also evaluating at least two other mergers including MEDGULF Saudi Arabia (solvency: 71.2%) with Buruj Cooperative Insurance Company which if completed is expected to improve the creditworthiness of MEDGULF as the survivor, according to rating agency Moody's. Meanwhile, Dubai Islamic Insurance & Reinsurance Company (AMAN) faces setbacks, with both Abu Dhabi National Takaful P.S.C "Takaful" and Salama Islamic Arab Insurance Co. terminating their agreements to acquire AMAN’s insurance portfolios in Q3 2024. On a positive note, insurance revenue has increased across the region by 13.9%. Higher rates, mandatory coverage requirements, and ongoing market consolidation are underlying factors. Notably, Qatar Insurance Group saw a remarkable 60% increase in GWP from regional markets, largely driven by growth in medical business, likely from the UAE. Download your copy of the Q3 2024: GCC Performance Periodical in association with Lux Actuaries & Consultants Actuaries Nisha Braganza Shivash Bhagaloo #insurance #management #markets #economy #marketing #growth #mergersandacquisitions #sales

#ksa: Medical business - representing 60% of the market - weakens underwriting performance for most Saudi insurers, resulting in an increase of 1.2% in the overall Net Combined Ratio (NCR) that reached 96% for the period. While the listed insurers have collectively posted a 15% increase in after-tax profits, reaching SAR 3bn due to higher investment income, profits for insurers excluding the top three fell by 28%. Gross Written Premium (GWP) grew by 15.7%, with notable increases in P&S premiums (up SAR 3.8bn) led by Al Rajhi Takaful, medical premiums (up SAR 3.2bn) largely from Tawuniya and Bupa Arabia, and P&C premiums (up SAR 1.2bn), mainly from Walaa Cooperative Insurance Co. and Tawuniya. However, motor premiums declined by 4% amid tough competition. Other key developments during the quarter include capital increases ahead of the 15 December 2024 deadline and ongoing merger evaluations: - Proposed capital increases of SAR 100mn and SAR 150mn by SALAMA Cooperative Insurance Co. and Saudi Enaya Cooperative Insurance Co. respectively are pending shareholder approval at EGMs scheduled for late November 2024 while Allied Cooperative Insurance Group (ACIG)'s proposed increase of SAR 209mn, is subject to regulatory procedures. - On the other hand, United Cooperative Assurance / UCA (solvency 63%) canceled its planned SAR 300mn capital increase in September 2024 on grounds of improving profitability. - Likewise, GULF GENERAL COOPERATIVE INSURANCE CO. suspended its planned SAR 300mn capital increase in favor of a potential merger with Gulf Union Al Ahlia, announced in August 2024. - Other mergers under evaluation include MEDGULF Saudi Arabia (solvency 71.1%) with Buruj Cooperative Insurance Company. The rating outlook of both insurers were revised to under review for upgrade/downgrade respectively by Moody's’s in Q3 2024. - Liva Group (Saudi) is also in merger discussions with Malath Insurance as announced in August 2024. #comment ‘Interested’ to receive the upcoming Q3 2024 GCC Performance Periodical in your inbox. In association with Lux Actuaries & Consultants. Nisha Braganza Shivash Bhagaloo #insurance #management #markets #economy #marketing #growth #mergersandacquisitions #M&A #sales

#qatar: After-tax profits of Qatar’s listed insurers rise by 18.1% to QAR 1.1bn in the first nine months of the year with all (8) insurers reporting a growth in earnings, notably from higher investment income. Qatar General Insurance & Reinsurance Co. (QGRI) has registered the highest relative growth in earnings, up 408% to QAR 46.9mn compared to QAR 9.2mn in 9M 2023. These results, however, are reported under a material valuation uncertainty regarding QGRI’s investment properties, which are scheduled for an independent valuation before the end of the year, according to the financial statements. QGRI’s real estate portfolio is said to be highly concentrated with just two properties accounting for over one-third of the insurer’s investment portfolio. This concentration exposes the insurer to significant capital volatility, according to rating agency AM Best, which has maintained a negative outlook for the insurer since its downgrade in 2021. Over the past six years (2017-2023), revaluation losses have totaled QAR 2.4bn, with QAR 1.3bn recorded in 2023 alone.   Separately, the total insurance revenue of Qatar’s listed insurers has declined owing to Qatar Insurance Group's (QATI) conscious effort to reduce its exposure to underperforming international markets while strengthening its position in domestic and regional markets. It is interesting to note that QATI’s Gross Written Premium (GWP) from international and domestic markets declined by 32% and 9%, respectively, in 9M 2024 while GWP from regional markets has surged by 60%, rising to QAR 2.7bn from QAR 1.7bn in 9M 2023, notably from growth in #medical business. Excluding QATI, the revenue growth for the remaining listed insurers in Qatar averages to 12.0% during this period. #comment ‘Interested’ to receive the upcoming Q3 2024 #GCC Performance Periodical in your inbox. Powered by Lux Actuaries & Consultants Shivash Bhagaloo Nisha Braganza   #insurance #management #markets #economy #marketing #growth #mergersandacquisitions

Important #update for #DIFC Companies: Go Saver, the End-of-Service Benefits (#EOSB) Savings plan by Sukoon Insurance, is now fully operational in DIFC after nearly a year of completing its licensing process in July 2023. Operated through its fully-owned subsidiary, Sukoon Workplace Savings Solutions Limited, Go Saver is now the second approved plan for DIFC companies, marking the end of the single dominance of DEWS since launch in 2020. For more details, check out our latest post: https://lnkd.in/d7vvVsNH Stay updated by subscribing to Pensions Monitor’s newsletter! Have questions? Reach out to us at info@pensionsmonitor.com Ministry of Human Resources and Emiratisation Securities and Commodities Authority (SCA) Zurich Middle East Equiom Group Mercer Advisors Generali   #EndOfService #FinancialPlanning #tax #finance #pension #markets #financialservices #future #management #insurance #HumanResources #EoSS #savings #startups #EOSB #socialmedia #funds #Compliance #PensionsMonitor #EmployeeBenefits #HR #EmployeeBenefits

#HR Professionals: #UAE's End-of-Service Savings scheme isn’t just another regulatory requirement. It’s a critical element of your corporate #strategy that will impact both, your company’s financial health and your employees’ well-being and so, early preparation is key. While it’s still optional, now is the perfect time to get ahead. Have you started documenting your Pension Strategy? Pensions Monitor has been talking to companies about their readiness, and here are some pointers: - Budget integration: Should your budget plan for 2025 or 2026? - Transition approach: Phased or full transition – what’s best for your company? - Contribution levels: Minimum statutory or more, for tax benefits? - System capabilities: Are your systems up to the task? - Decision-making: This isn’t a one-way street. How will you incorporate employee preferences? - Communication: How will you inform and educate employees? - And many more critical questions raised in our latest article: https://lnkd.in/dSPfpy-E Need expert advice? Contact us at info@pensionsmonitor.com. Stay informed with the latest in UAE's pension industry. Follow Pensions Monitor and sign up for our newsletter today! Federal Tax Authority Ministry of Human Resources and Emiratisation Ministry of Human Resources and Emiratisation Securities and Commodities Authority (SCA) Daman Investments Lunate HAYAH Insurance Emirates NBD National Bonds First Abu Dhabi Bank (FAB) Abu Dhabi Commercial Bank   #PensionStrategy #EndOfService #FinancialPlanning #tax #finance #pension #markets #financialservices #future #management #insurance #HumanResources #EoSS #savings #startups #EOSB #socialmedia #funds #Compliance #PensionsMonitor #EmployeeBenefits

#CFOs take note: Federal Tax Authority confirms that #tax benefits apply on #EOSB contributions to ‘funds’ for ‘all’ #employees, not just #uae nationals, conditions apply. The allowable deduction is ‘15% of total salary’ (subject to the arm’s length principle), which is considerably higher compared to the statutory EOSB computation of ‘5.83% and 8.33% of basic salary’ (where employment is less than or more than five years respectively). And the deduction is allowed only when the contribution is actually paid in the relevant tax period and not when the contribution accrues. - So, can companies benefit from tax relief by contributing ‘more than’ the statutory minimum to a fund on account of the accumulated EOSB liability? - Isn’t this a material incentive for cash-rich companies to voluntarily transition to the new alternative EOSB savings scheme even though there is no compulsion to do so at present? - Which funds qualify? Where can companies pay such contributions? Here’s our latest article that features responses from FTA: https://lnkd.in/ddje-Qxx We would love to know your thoughts. If you or your company has a view or question on this subject do #comment or drop an email to info@pensionsmonitor.com Federal Tax Authority Ministry of Finance, UAE Ministry of Human Resources and Emiratisation Securities and Commodities Authority (SCA) Daman Investments Lunate HAYAH Insurance Emirates NBD National Bonds First Abu Dhabi Bank (FAB) Abu Dhabi Commercial Bank   #tax #finance #pension #markets #financialservices #future #management #insurance #Humanresources #EoSS #savings #startups #EOSB #socialmedia #funds

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A new tech provider for End-of-Service Savings emerges in the #uae but its “not a #startup” It's called Benefitster and its solution comprises of a robust industry grade #pension administration system ALREADY in use in 12+ countries managing over 4 million employees with a full accounting system and live interaction with #banks, #tax and #HR authorities. This powerful back-end is complimented with a #smart #employee #app, and an open #API linking the solution to fund managers and custodian banks. This comprehensive #turnkey #fullstack solution has been brought to the UAE by two industry veterans in the #insurance, #investments, #pensions space: Ruan van Rensburg, the founder of Lux Actuaries & Consultants and Nikolaus Frei, an insurance executive who has had a long career as CEO of several insurance companies. Could this be 'the' technology solution for UAE’s End-of-Service Savings scheme? More details on the solution as well as pricing in our latest exclusive article: https://lnkd.in/dz3DK6U4 Ministry of Human Resources and Emiratisation Securities and Commodities Authority (SCA) Daman Investments Lunate HAYAH Insurance Emirates NBD National Bonds First Abu Dhabi Bank (FAB) Abu Dhabi Commercial Bank FinFlx (YC W22) Aurem Equevu Sukoon Insurance   #turnkey #pension #markets #financialservices #future #management #insurance #Humanresources #EoSS #savings #startups #EOSB #socialmedia #funds #employees

Will HAYAH Insurance become the third approved provider for the End-of-Service Savings scheme in the #UAE?   We at Pensions Monitor seem to think so. So how exactly has HAYAH Insurance made this happen being an #insurance company? Find all the answers in our exclusive article: https://lnkd.in/dX83jwbN We would love to know what you think. If you or your company has a view on this subject do #comment or send us an email on info@pensionsmonitor.com Mohamed Seghir Adil SAGHIR Nisha Braganza Central Bank of The UAE Ministry of Human Resources and Emiratisation Securities and Commodities Authority (SCA) First Abu Dhabi Bank (FAB) Daman Investments Lunate Sukoon Insurance Zurich Middle East DIFC Emirates NBD Abu Dhabi Commercial Bank National Bonds #pension #markets #financialservices #future #management #insurance #Humanresources #EoSS #savings #startups #EOSB #socialmedia #funds #employees

IM’s Q2 2024 GCC Performance Periodical covered in Khaleej Times today: https://lnkd.in/d8FyP5An