moody’s uae regulatory credit changes positive for insurers
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Moody’s: UAE regulatory credit changes positive for insurers

Arab Today, arab today

Arab Today, arab today Moody’s: UAE regulatory credit changes positive for insurers

Profitability for UAE insurers
Jeddah - Arab Today

UAE insurers will likely see a medium-term improvement in their credit profiles as the sector adjusts to financial regulations introduced in February 2015 and overcomes initial compliance hurdles, says Moody’s Investors Service in a report issued Wednesday.
The “UAE’s new financial regulations should, in the medium term, underpin insurers’ profitability as well as their capitalization, asset quality and reserve adequacy,” said Mohammed Ali Londe, assistant vice president — analyst at Moody’s.
“At the same time, price competition may ease as increased regulatory costs trigger industry consolidation and price hardening,” he said.
Industry consolidation is likely as a result of the new regulatory landscape.
“Additional costs associated with the new regulations may prompt consolidation of smaller insurers, or encourage them to focus on business lines that yield adequate returns,” explained Londe.
Profitability for UAE insurers remains under short-term pressure as new actuarial reserve-setting and reporting requirements will drive continued technical reserve strengthening in 2016 and 2017. Over the medium term, however, stricter reserving requirements will likely encourage adequate premium rate-setting market-wide, supporting profitability.
According to the report, asset quality will also likely improve for insurers, as the new rules will over time limit insurers’ traditionally high exposure to riskier assets such as equities and property.
In addition, Moody’s expects solvency to improve overall as the regulations set capital requirements tailored to the specific risks borne by each company.
Initial reserve strengthening has partially eroded equity of several UAE insurers due to the higher losses incurred, for example the UAE listed insurers’ total equity declined from $4.5 billion to $4.3 billion between 2014 and 2016.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody’s uae regulatory credit changes positive for insurers moody’s uae regulatory credit changes positive for insurers

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

moody’s uae regulatory credit changes positive for insurers moody’s uae regulatory credit changes positive for insurers

 



GMT 21:11 2017 Friday ,21 July

Floods submerge 700 houses in Rokan Hulu, Riau

GMT 02:37 2017 Wednesday ,22 February

MoF, FEWA sign agreement on e-Dirham system

GMT 06:39 2017 Saturday ,18 March

We shot down an Israeli Jets

GMT 09:20 2017 Saturday ,08 April

Laser weapons edge toward use in US military

GMT 21:57 2016 Friday ,08 April

Chinese IDs let citizens strike prettier pose

GMT 08:18 2017 Wednesday ,15 November

Iceland held by last-gasp Qatar

GMT 18:03 2016 Monday ,15 August

Megan Fox, husband welcome 3rd son

GMT 15:40 2016 Tuesday ,29 March

Immigration Minister arrives in Khartoum

GMT 09:22 2017 Saturday ,16 December

Saudi Arabia, Russia discuss means to fight terrorism

GMT 03:26 2017 Saturday ,11 March

300m children breathe heavily polluted air: UN

GMT 14:51 2017 Monday ,16 January

Prince Sultan honors Mobily

GMT 16:11 2016 Tuesday ,30 August

GIC buys stake

GMT 06:05 2017 Thursday ,12 October

Iran says US opposing 'whole world' on nuclear deal
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday