Union Insurance Reports 76% Surge in Half-Year Net Profits to AED 22.7 Million

Al Ittihad Insurance Delivers Stunning 76% Profit Surge, Signaling UAE Market Resilience

Al Ittihad Insurance has posted a remarkable 76% jump in net profits for the first half of 2025, reaching AED 22.7 million after tax—a performance that underscores the growing strength of UAE's insurance sector and highlights how regional insurers are capitalizing on economic diversification and improved risk management practices.

Record-Breaking Financial Performance

The company's net insurance business results soared by an even more impressive 93%, climbing from AED 5.7 million in H1 2024 to AED 11.07 million in the same period this year. This dramatic improvement stems from a combination of strong underwriting results, cost reduction initiatives, and enhanced investment income—a trifecta that reflects both strategic execution and favorable market conditions.

Perhaps most telling is the company's solvency ratio, which reached an unprecedented 170%, up from 143% at the end of 2024. This figure not only exceeds regulatory requirements but positions Al Ittihad well above industry benchmarks, providing substantial cushion for future challenges.

What This Means for UAE's Insurance Landscape

Market Maturation in Action

Al Ittihad's performance mirrors broader trends across the UAE's insurance sector, where companies are benefiting from the country's economic diversification away from oil dependence. The surge in construction projects, tourism recovery post-COVID, and growing expatriate population has created robust demand for various insurance products.

Risk Management Paying Dividends

The 93% jump in net insurance results suggests the company has successfully navigated the complex balance between premium growth and claims management. This is particularly significant in a region where extreme weather events and geopolitical tensions can quickly impact insurance portfolios.

Regional Context and Competitive Positioning

The UAE insurance market has been consolidating and maturing, with smaller players either merging or being acquired by larger entities. Al Ittihad's strong performance positions it favorably in this environment, potentially making it an attractive partner for reinsurers or even a consolidation target.

Compared to insurance markets in Saudi Arabia and Qatar, the UAE has shown greater resilience and growth consistency, partly due to its more diversified economy and established regulatory framework. The company's 170% solvency ratio compares favorably with regional peers and exceeds many international standards.

Investment and Strategic Implications

CEO Ramez Abu Zeid attributed the results to "effective internal controls and advanced risk management procedures," suggesting the company has invested heavily in operational infrastructure. This operational excellence, combined with the strong solvency position, creates multiple strategic options for Al Ittihad.

The enhanced liquidity levels mentioned indicate the company is well-positioned to pursue growth opportunities, whether through organic expansion, strategic acquisitions, or new product development. For investors, this represents a rare combination of defensive strength and growth potential in the regional insurance space.

Looking Forward

The sustainability of this growth will largely depend on the UAE's continued economic expansion and the company's ability to maintain underwriting discipline while scaling operations. With major events like Expo 2030 on the horizon and ongoing infrastructure development, demand for insurance products should remain robust.

However, the real test will be whether Al Ittihad can maintain these impressive growth rates while preserving the risk management standards that have driven current success. The insurance industry's cyclical nature means today's winners must prepare for tomorrow's challenges, making the company's strong solvency position particularly valuable.