Mid and small-sized insurance companies in the UAE are outpacing their larger rivals, growing revenue by 19 per cent in the first half of 2026 compared to 12 per cent growth for the country’s five biggest insurers, according to a new industry report.
That momentum among smaller players helped drive the entire industry to a strong first half.
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UAE-listed insurers posted a combined net profit of Dh2.2 billion, up 12 per cent from Dh2.0 billion in the same period last year. The top five insurers accounted for Dh1.58 billion of that, up 9 per cent, while smaller and mid-sized companies saw profits jump 19 per cent to Dh610 million, said Badri Consultancy in its latest H1 2026 report about UAE insurance market.
Overall industry revenue reached Dh28 billion in the first six months of the year, up 14 per cent from Dh24.6 billion in H1 2025. The top five insurers brought in Dh18.8 billion, while the rest of the market generated Dh9.2 billion.
Smaller insurers also led the way when it came to the core business of insurance – collecting premiums and paying out claims, separate from investment earnings. Results from this side of the business improved 16 per cent across the industry to Dh1.8 billion, with smaller companies posting a 45 per cent jump to Dh470 million, far outpacing the top five insurers’ 9 per cent growth to Dh1.37 billion.
One measure of how efficiently insurers are running their business — known as the combined ratio, which compares money paid out in claims and expenses against premiums collected – averaged 86 per cent across the industry. A ratio below 100 per cent means an insurer is turning a profit on its core business; four of the UAE’s 27 listed insurers came in above that mark, suggesting underwriting pressure remains concentrated among a small group of companies.
Investment income told a different story, however, with the balance tipping in favour of the bigger players.
Industry-wide investment income grew 13 per cent to Dh1.4 billion, but the top five insurers saw a strong 26 per cent jump, while smaller companies saw theirs dip by 5 per cent.
Hatim Maskawala, managing director of Badri Consultancy, which produced the report, said the results point to a healthier insurance sector overall.
“This suggests that while investment performance continues to support overall profitability, the improvement in Insurance Service Results provides a stronger underlying foundation for earnings,” he said.
“Nevertheless, the significant differences in profitability across individual insurers highlight the continued importance of disciplined underwriting and effective portfolio management.”
Looking ahead to the second half of the year, Maskawala said insurers are in a good position, helped by steady revenue growth and improving performance. “It is encouraging to note that the companies are currently avoiding the temptation to reduce prices in search of greater market share,” he said.
He flagged a few things to watch, though — rising motor repair costs linked to regional geopolitical tensions could squeeze insurers, along with the cost of reinsurance (the backup coverage insurers buy for themselves), claims management, and regulatory requirements around how much capital companies need to hold.
“Companies with weaker underwriting or capital positions will need to focus on pricing discipline, portfolio optimization and capital strengthening, while the broader market should continue converting top-line growth into sustainable technical profitability,” Maskawala said.
Source: Khaleej Times