The insurance landscape in the UAE and the broader Gulf Cooperation Council (GCC) region kicked off 2026 with promising momentum, characterized by steady gains in both revenue and net profits. According to data from Badri Management Consultancy, UAE-listed insurers saw their net profits climb to Dh1.1 billion in the first quarter, marking a nine percent year-on-year increase. This growth was bolstered by an 11 percent rise in total revenue, which reached Dh13.4 billion. Notably, mid-sized companies outperformed the market leaders in several metrics, with their insurance service results—a key indicator of core underwriting profitability—surging by 66 percent.

Despite these gains, the sector faces a complex environment as investment income took a significant hit, falling by 17 percent overall. This shift highlights a strategic transition where firms are leaning more heavily on disciplined underwriting rather than investment returns for their profitability. Across the wider GCC, insurers reported a 14.7 percent jump in net profits to $714 million, though the region remains somewhat divided, with 29 firms still reporting losses or profit declines. Moving into the second quarter, industry experts advise firms to remain cautious, particularly regarding the rising costs of reinsurance and the ongoing need for strict capital management to sustain long-term market stability.