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Net profit the company recorded in the GCC last year, an increase of 19 per cent year-on-year. Its gross written premium was $445m, up more than eight per cent. (SUPPLIED)
AXA Insurance Gulf saw growth in its commercial as well as personal property insurance premium in the UAE last year, compared to a year earlier, according to a top official of the company.
"In the UAE, the commercial property insurance premium grew by more than 20 per cent, while personal property insurance premium was up more than 15 per cent last year. In Dubai, despite the downturn in the property market, our personal property insurance and corporate property insurance business grew last year," Jean-Louis Laurent Josi, CEO, AXA Insurance Gulf and Middle East, told Emirates Business, announcing the annual results of the firm.
Overall in the GCC, the company recorded a net profit of $40 million (Dh146.92m) last year, up 19 per cent on a year earlier, while the gross written premium was $445m, a rise of more than eight per cent.
All the markets in the Gulf generated profits for the firm, and the growth ranged between 15 and 25 per cent in all countries, except in Dubai where the premium income, especially auto insurance premium, posted a slight decline, he said.
Overall, the firm's profit did increase in the UAE, although premium income remained flat last year compared to 2008.
Nevertheless, he said, the UAE continues to be a major driver of profits for the company, he said.
"The UAE is an important market for us as it represents more than one third of our operations in the region in terms of premium income as well as profit. The UAE has a lot of structural advantages that will never disappear," said Josi.
The technical results of the firm did well too in 2009.
"In 2008 and 2009, we didn't have to book any material impairment in the region, which is a very good achievement. Our technical profits represent more than two-thirds of our profits in the GCC," he said.
Asked whether the recent Dubai World debt issue is going to have any effect on the company, he said: "Although Dubai has been hit especially in the real estate business, but that doesn't mean all other sectors of its economy are dong bad. People are being over-pessimistic on the Dubai World debt issue, and we don't believe we're going to be impacted by it. Dubai is still the financial centre of the Middle East and that is not going to change overnight."
He said the firm also saw a high growth in the health insurance sector as it is gradually becoming compulsory in the region. "We booked big growth in group life insurance and property insurance business in the entire region. However, the personal motor insurance business was more challenging especially in Dubai because of job losses and some banks made lending criteria a bit tougher, leading to lesser sale of cars and thus lesser premium income," he said.
He said although this year is going to be challenging but there is still more room for the insurance industry to grow in the Gulf than in mature markets. The main drivers for the sector would be low insurance penetration and good demographics as the number of young population is growing in the region. Both these factors, he said, would continue to provide opportunities to insurers.
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