The specialist Lloyd’s of London insurance and reinsurance marketplace is anticipating 20% year-on-year premium growth in 2018 for business written out of its Middle East and North Africa (MENA) base, according to Vincent Vandendael, Lloyd’s Chief Commercial Officer, in an interview with The National.
Lloyd’s opened its MENA base in the Dubai International Finance Centre (DIFC) in 2015, and in 2017 secured trading rights in Abu Dhabi’s financial free zone, the Abu Dhabi Global Market (ADGM).
Currently, the majority of Lloyd’s MENA business is written from London, but Vandendael told The National that diversification in the regional economy suggests an opportunity for insurers and reinsurers to develop and offer new solutions from the Dubai platform.
Specifically, Lloyd’s expects to see premium growth in 2018 increase by 20% year-on-year to $115 million by the end of 2018. This is compared to a projected $95 million for 2017 and the $80 million recorded in 2016.
“We are consolidating our footprint here and our goal is to complement and add value to local markets,” Vandendael told The National.
Projected gross domestic product (GDP) growth combined with emerging industry sectors, such as renewable energy, is what will drive the continued growth in the region, according to Vandendael.