DIFC underwriting volumes hit record $2.6bn in 2023

Image credit: Emirates News Agency

The Dubai International Financial Centre (DIFC) registered a 23 per cent year-on-year (YOY) growth in gross written premiums to a record $2.6bn in 2023, cementing the financial centre’s position as the hub for the (re)insurance industry.

DIFC said new insurance and reinsurance company registrations surged by 20 per cent in 2023, including the first re-domiciliation of a Guernsey-based captive.

“Our platform enables clients to achieve their growth ambitions, reflected in the achievement of close to $2.6bn gross written premiums during 2023, the highest in the centre’s history. Our ongoing partnership with Global Reinsurance for the Dubai World Insurance Congress reflects the centre’s commitment to driving economic growth and the future of finance,” said Arif Amiri, CEO of the DIFC Authority.

The centre bolstered its position as a hub for managing general agents (MGAs), which accounted for 43 per cent of new registrations, driven by its globally recognised regulatory environment that enables partnerships with cedants and brokers.

Over the past 12 months, Alif Limited, Arc Insurance and Reinsurance, Barents Risk Management, as well as BharatRe Global, Chedid Reinsurance Brokers, Hensley Wynne Furlonge Partners (Middle East) and Octare Group are among some of the companies to join DIFC’s burgeoning insurance sector.

DIFC’s growing ecosystem

Meanwhile, new company registrations in the DIFC surged by 34 per cent in 2023, bringing the number of active companies in the financial centre to 5,523.

The hub said 1,451 new companies commenced operations in the financial hub last year, the highest number of new registrations since the founding of the centre two decades ago.

Its operating profit reached Dhs859mn in 2023, up 27 per cent, while its combined revenue jumped 23 per cent to reach Dhs1.3bn after a sharp increase in newly registered companies. Its total assets rose 18 per cent to 18bn.

Last year,  the number of firms registered and licenced by the Dubai Financial Services Authority (DFSA) increased by 117 to 791 – the largest cluster of financial firms in the Middle East, Africa, and Southern Asia region.

This includes 50 firms with hedge fund activities, more than 350 wealth and asset managers, over 200 banks, and more than 100 insurance companies.

 Read: DIFC says company registrations rose by 34% in 2023