UAE Insurance Sector Hits $20.4bn in Premiums as Profits Surge 54%

The UAE insurance sector recorded strong growth in 2025, with gross written premiums, profits, assets and the number of active policies all increasing, according to the latest annual statistical report on insurance activity issued by the Central Bank of the UAE.

Gross written premiums rose 14.9% during the year to AED74.8bn ($20.4bn), compared with AED65.1bn ($17.7bn) in 2024. The increase reflects continued demand for insurance products across the UAE as economic activity expands and businesses and individuals seek greater protection against financial and operational risks.

The sector also delivered a significant improvement in profitability. Total profits reached AED4bn ($1.09bn) in 2025, up from AED2.6bn ($708m) in 2024. This represents an increase of approximately 54%, marking one of the strongest improvements among the sector’s key financial indicators.

UAE insurance sector premiums rise to $20.4bn

The rise in gross written premiums was one of the most notable developments in the UAE insurance market during 2025.

According to the Central Bank of the UAE, total gross written premiums increased from AED65.1bn in 2024 to AED74.8bn in 2025. In dollar terms, premiums reached approximately $20.4bn, compared with $17.7bn a year earlier.

The 14.9% increase demonstrates the continued expansion of insurance demand across the UAE economy. Growth was supported by activity across multiple insurance categories, including health insurance, as well as broader demand from consumers, businesses and other economic sectors.

The increase in premiums was accompanied by higher claims. Total paid claims rose 11% during the year to AED46.2bn ($12.6bn), compared with the previous year.

Technical provisions also increased, reaching AED96.3bn ($26.2bn), representing growth of 4.4%. Technical provisions are an important measure of insurers’ ability to meet their future obligations to policyholders.

Together, the increases in premiums, claims and technical provisions point to a larger and more active insurance market.

Profits jump 54% as insurers strengthen financial performance

Profitability was another major area of improvement for the UAE insurance sector.

Total sector profits increased from AED2.6bn in 2024 to AED4bn in 2025. The rise of approximately 54% indicates a substantial improvement in the financial performance of insurance companies operating in the country.

The stronger profitability came alongside improvements in several other indicators, including gross written premiums, total assets and the premium retention ratio.

The premium retention ratio increased to 56% in 2025 from 54.9% a year earlier. A higher retention ratio indicates that insurers retained a greater proportion of the premiums they underwrote rather than transferring the associated risks through reinsurance.

The improvement provides another indication of the sector’s strengthening financial position.

UAE insurance sector assets reach $44.9bn

Total assets held by the UAE insurance sector reached AED164.9bn ($44.9bn) in 2025, rising 6.1% from AED155.5bn ($42.3bn) in 2024.

The increase highlights the growing scale of the insurance industry and its expanding role within the UAE’s wider financial system.

Invested assets accounted for a substantial share of the sector’s balance sheet. Total invested assets reached AED96.4bn ($26.3bn), equivalent to 58.4% of total insurance sector assets.

The scale of these investments underlines the importance of insurance companies not only as providers of risk protection but also as institutional investors within the UAE economy.

The sector’s investment activity contributes to the broader financial ecosystem while allowing insurers to manage the funds associated with policyholder obligations.

Active insurance policies reach 17.3 million

The number of active insurance policies in the UAE reached 17.3 million in 2025, highlighting the widespread use of insurance products among individuals and businesses.

The increase in policy numbers reflects continued expansion in insurance coverage and growing demand for products designed to protect against health, property, business and other risks.

Health insurance was one of the strongest areas of growth during the year.

The number of health insurance policies increased by 26.1% following the implementation of the mandatory basic health insurance scheme. The introduction of mandatory coverage helped expand the number of people and workers covered by health insurance and contributed significantly to overall policy growth.

The development also demonstrates how regulatory changes can influence insurance penetration and expand the addressable market for insurers.

Health insurance demand accelerates

The 26.1% increase in health insurance policies was particularly significant for the UAE insurance market.

The implementation of the mandatory basic health insurance scheme increased the requirement for eligible individuals to have basic health coverage. As a result, insurers experienced stronger demand for health-related products.

Health insurance has become an increasingly important component of the UAE’s insurance ecosystem, given the country’s large workforce, growing population and expanding healthcare sector.

The increase in health policies also contributed to the broader rise in active insurance policies to 17.3 million.

As mandatory coverage requirements develop, the health insurance segment is likely to remain an important driver of insurance market activity.

UAE insurance sector has 58 insurance companies

The Central Bank data showed that 58 insurance companies were operating in the UAE in 2025.

The country’s insurance ecosystem also included 515 insurance-related professions, reflecting the wide range of activities supporting the industry.

These figures demonstrate the depth of the UAE insurance market, which includes insurers as well as professionals and service providers involved in insurance-related activities.

The breadth of the ecosystem supports competition, product development and the delivery of insurance services across different parts of the economy.

Capital remains well above regulatory requirements

The UAE insurance sector also maintained a strong capital position during 2025.

Available capital across the sector stood at 455% of the minimum required level. This means that the industry’s available capital was more than four times the minimum level required under the applicable regulatory framework.

The strong capital position provides insurers with a substantial buffer against potential financial pressures and supports their ability to meet obligations to policyholders.

It also reinforces the resilience of the UAE’s insurance market as companies respond to increasing demand and changing risk conditions.

Insurance density reaches $1,770 per capita

Insurance density in the UAE reached approximately AED6,500 ($1,770) per capita in 2025.

Insurance density is commonly used to measure the level of insurance premiums relative to population and provides an indication of the depth of insurance activity within an economy.

The UAE’s level reflects the significant role insurance products play in the country’s economy and financial system.

The combination of higher premiums, increasing policy numbers and strong capitalisation suggests that insurance coverage is becoming increasingly embedded in economic activity across the country.

A growing role in the UAE economy

The 2025 performance demonstrates that the UAE insurance sector is becoming an increasingly important part of the country’s financial infrastructure.

The rise in premiums indicates stronger demand for risk protection, while higher profits and assets point to improved financial performance and greater industry scale.

At the same time, the increase in paid claims shows that insurers are handling a larger volume of policyholder obligations as insurance coverage expands.

The sector’s investment activity is also significant. With AED96.4bn in invested assets, insurers represent an important source of institutional investment within the UAE economy.

The strong capital position provides additional support for the industry’s ability to absorb risks and continue expanding.

Outlook for the UAE insurance market

The 2025 figures provide a positive picture of the UAE insurance market, with growth recorded across several major indicators.

Gross written premiums reached AED74.8bn, total profits rose to AED4bn, total assets increased to AED164.9bn and active policies climbed to 17.3 million.

Health insurance emerged as a particularly important growth area, with policies increasing by 26.1% following the mandatory basic health insurance scheme.

With 58 insurance companies, 515 insurance-related professions and available capital equivalent to 455% of the minimum required level, the sector enters the next phase of growth from a strong financial position.

The Central Bank of the UAE’s data ultimately points to an insurance industry that is expanding alongside the wider UAE economy. Increasing insurance penetration, stronger financial performance and substantial capital buffers are supporting the sector’s contribution to risk management, investment and financial stability.

As businesses and consumers continue to seek greater protection from economic and personal risks, the UAE insurance sector is expected to remain an important component of the country’s evolving financial landscape.