Dubai National Insurance & Reinsurance

Dubai National Insurance (DNI) announced a 15% cash dividend at its Annual General Assembly Meeting, totaling AED 17.325 million. The company reported a net profit of AED 53.5 million for 2024, marking a 13.6% increase from the previous year. Insurance revenue rose by 5% to AED 469.1 million. Chairman Khalaf Ahmad Al Habtoor attributed the strong financial performance to effective underwriting strategies and investment income, despite challenges like the April floods. CEO A.R. Srinivasan highlighted the company's significant underwriting growth and enhanced digital capabilities. Al Habtoor expressed gratitude to UAE leadership and regulatory authorities, emphasizing DNI's commitment to sustainable growth and innovation.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) for Dubai National Insurance & Reinsurance P.S.C. (DNI) in the UAE, with a stable outlook. These ratings reflect DNI's very strong balance sheet, strong operating performance, limited business profile, and appropriate enterprise risk management. The company's balance sheet strength is supported by strong risk-adjusted capitalization, good earnings retention, low underwriting leverage, good liquidity levels, and prudent reserving practices. However, DNI's high dependence on reinsurance, with a retention ratio averaging 35% over the last five years, is noted as a rating offset. This risk is partly mitigated by using a panel of financially strong international reinsurers. In 2023, DNI achieved a return on equity of 6.7% and a net combined ratio of 94.1%, with investment income contributing significantly to net profit. Recent technical profitability has faced challenges due to difficult underwriting conditions.