With Wednesday the last day to become eligible for Al Ain Ahlia Insurance's 30 per cent cash dividend, the company looks good going into the rest of the year.
Last year was difficult for the Middle East insurance sector. The region experienced intense civil disruption in some places, contributing to losses.
The UAE, however, was one of the more dynamic, and peaceful, of the insurance markets in the Middle East and North Africa.
Over the long term, there has been very steady growth in premiums - thanks in part to the growth and diversification of the economy, and in part to developments such as the 2008 introduction of compulsory health insurance for resident expatriates.
Al Ain Ahlia remains conservative in its outlook for this year. However, investors should note that, despite last year's fall in profits to Dh53.2m from Dh61.7m a year earlier, the underlying fundamentals of the company are strong.
Net cash from investing activities more than doubled last year to Dh16.2m compared with Dh7.3m a year earlier. Two buildings, in Abu Dhabi and Al Ain, produced net rental income of Dh2.41m, from Dh2.37m a year earlier and Dh590,344, from Dh561,947 a year earlier, respectively.
The company benefits from not having any single insurance contract or a small number of related contracts that cover low-frequency, high-severity risks such as earthquakes. Nor does it cover risks for any single incidents that expose it to multiple claims.
It also maintains it has adequate reinsurance for risk that may involve significant litigation.
Premiums - the amount charged by an insurance company for coverage - did fall at Al Ain Ahlia, but many emirates insurance companies are responding similarly to very competitive conditions. Higher retention rates go some way to offset this.