UAE Insurance Sector Assets Reach $44.9 Billion

Gross written premiums climbed 14.9% to $20.37 billion (AED74.8 billion) in 2025, up from $17.73 billion (AED65.1 billion) a year earlier, according to the Central Bank of the UAE’s Annual Statistical Report for the Insurance Sector. The increase was spread across all three main insurance categories rather than resting on a single line of business.

Health insurance remained the largest contributor, with premiums rising 16.3% to $9.91 billion (AED36.4 billion). Property and liability premiums increased 14.1% to $8.17 billion (AED30 billion), while insurance of persons and fund accumulation grew 12.1% to $2.29 billion (AED8.4 billion). Together, the figures show that medical coverage accounted for nearly half of all premiums written during the year.

Policy numbers told a more measured story. The total increased only 0.1%, from 17.2 million in 2024 to 17.3 million in 2025, even as the value of premiums grew at a double-digit rate. The difference suggests that premium growth reflected changes in the mix, scope or pricing of coverage, not simply a sharp rise in the number of contracts.

Mandatory Health Plan Changes the Policy Mix

Health insurance policies increased 26.1% to 2.8 million after the UAE extended mandatory basic coverage across all emirates. The basic health insurance program, which took effect on Jan. 1, 2025, covers private-sector employees and domestic workers who were not already included under existing arrangements in Abu Dhabi and Dubai.

The expansion of health coverage changed the composition of the UAE insurance market, even as the total policy count remained broadly stable. Health policies rose sharply, while motor policies declined 3.7% to 9.4 million and other property and liability policies decreased 5.6% to 2.5 million. Insurance of persons and fund accumulation policies increased 7.2% to 2.6 million.

Claims payments also rose as the market expanded. Insurers paid $12.58 billion (AED46.2 billion) in gross claims during 2025, an 11% increase from the previous year. Technical provisions advanced 4.4% to $26.22 billion (AED96.3 billion). Health-related technical provisions grew 16.4%, although provisions for property and liability insurance declined 6.5%.

Beyond expanding access to medical coverage, the nationwide scheme changed how insurance fits into the employment process. Employers must arrange coverage before residency permits can be issued or renewed, making health insurance part of routine employment compliance rather than an optional workplace benefit, according to the Ministry of Human Resources and Emiratisation.

The health insurance expansion took place alongside broader changes in market oversight. Under the Central Bank’s insurance broker regulations, brokers cannot collect premiums or issue policies and endorsements. The rules also address auditing, governance, cybersecurity and data retention, placing clearer boundaries around the role of intermediaries.

Supervision is also becoming more closely tied to the risks carried by individual insurers. The Central Bank’s supervisory approach uses risk assessments to determine the intensity of oversight, while insurers are expected to identify and manage material risks through their governance frameworks. This approach connects operational supervision with the capital and solvency measures examined later in the report.

Investment Income Supports Profits

Total insurance-sector assets reached $44.90 billion (AED164.9 billion), rising 6.1% from $42.34 billion (AED155.5 billion) in 2024. Invested assets grew more quickly, increasing 13.5% to $26.25 billion (AED96.4 billion) and representing 58.4% of insurers’ total assets.

Equity and debt securities made up the largest portion of the investment portfolio at $11.90 billion (AED43.7 billion), compared with $9.88 billion (AED36.3 billion) in 2024. Cash and deposits increased to $7.35 billion (AED27 billion), from $6.81 billion (AED25 billion). The movement toward a larger invested-asset base gave insurers another source of earnings alongside their underwriting operations.

Industry profit increased to $1.09 billion (AED4 billion) from $708 million (AED2.6 billion). The central bank attributed the improvement mainly to higher net investment income, meaning the gain cannot be read solely as evidence of better underwriting performance. The premium retention ratio nevertheless increased to 56% from 54.9%, leaving insurers with $11.41 billion (AED41.9 billion) of written premiums after reinsurance arrangements.

Capital Measures Remain Above Requirements

The sector’s minimum capital requirement stood at $1.52 billion (AED5.6 billion), down from $1.61 billion (AED5.9 billion) in 2024. Admissible assets less liabilities rose to $6.86 billion (AED25.2 billion), producing a minimum capital requirement solvency ratio of 455%, compared with 382% a year earlier.

A separate solvency capital requirement, designed to measure capital against a broader range of insurer risks, increased to $3.46 billion (AED12.7 billion) from $3.10 billion (AED11.4 billion). The corresponding solvency ratio edged up to 199% from 196%. Meanwhile, the minimum guarantee fund solvency ratio declined to 258% from 273%, even though it remained above the required level.

The industry comprised 58 insurers at the end of 2025: 22 national conventional insurers, 10 national takaful operators and 26 branches of foreign companies. The number of licensed insurance-related professions rose from 495 to 515. With premium income expanding much faster than policy volume, future reports will help show whether the 2025 result marked a one-year adjustment to mandatory health coverage or the start of a broader change in the UAE market’s revenue mix.