29.3 C
Dubai
Friday, April 26, 2024
spot_img

Strong growth, lackluster earnings ‘likely to squeeze GCC insurers’

[ad_1]


S&P Global Ratings expects earnings to rise modestly if insurers continue to reprice underperforming businesses.

Earnings should also be supported by higher investment returns after rising interest rates, said Emir Mujkic, credit analyst at S&P Global Ratings.

S&P Global Ratings said in a note titled “Slideshow: GCC insurers to 2023: Strong growth and subdued earnings could squeeze capital buffers”.

Premium income

“Profitability declines in most GCC markets in 2022 despite higher premiums,” Mujkic said.

The combination of strong premium growth, relatively modest earnings and continued high costs of meeting new accounting standards and other regulatory requirements could squeeze capital and solvency buffers. As the market becomes more fragmented, we expect many smaller and mid-sized insurers to feel these impacts the most.

Mujkic added: “While we expect the ratings of the larger, higher-rated insurers in our portfolio to remain broadly stable, the credit strength of many smaller and mid-cap insurers is likely to weaken, leading to further financing and consolidation in the sector .” trade arab news agency


[ad_2]

Source link

Related Articles

Dubai Gold Prices Dip as Regional Tensions Ease, Offering Investment Potential

 Dubai Gold Prices Ease Amid Regional De-escalation, Unveiling Investment Opportunities Dubai's gold market, a hallmark of the region's economic landscape, witnessed a notable downturn in...

Tesla Soars: Musk’s Commitment to ‘Affordable’ Cars Sparks Optimism Amid Growth Concerns.

Tesla Soars: Musk's Commitment to 'More Affordable' Cars Sparks Optimism, Eases Growth Concerns Tesla's stock witnessed a remarkable surge of approximately 10% on Wednesday, riding...

UAE President and King of Bahrain Discuss Fraternal Relations and Regional Developments

UAE President and King of Bahrain Discuss Fraternal Relations The recent meeting between the President of the United Arab Emirates (UAE) and the King of...

Blockchain Life 2024 thunderstruck in Dubai

Blockchain Life 2024: Electrifying Insights from Dubai Dubai, April 17, 2024 - The 12th edition of the Blockchain Life Forum, known as the leading gathering...

Coca-Cola Embraces Technological Transformation with $1.1 Billion Microsoft Cloud and AI Partnership

Coca-Cola Strikes $1.1 Billion Pact with Microsoft for Cloud and AI Services Microsoft and Coca-Cola have taken their collaboration to new heights with a $1.1...

Latest Articles