Adamjee Insurance hit with a staggering half-billion-rupee loss from devastating Dubai floods.
While the company's Pakistan operations stayed profitable, significant losses in its UAE auto business heavily impacted overall net income.
BUSINESSNEWS
Adamjee Insurance Company Limited (AICL), one of Pakistan’s leading insurers, has reported a staggering 500-million-rupee loss following catastrophic flooding in Dubai in April 2024. This revelation, shared during an analyst briefing on the company's performance and outlook, highlights the financial strain caused by extreme weather events in the UAE.
The floods, which devastated Dubai and the wider region, were among the most severe in decades, with over 250mm of rainfall in less than 24 hours—surpassing the UAE’s annual average rainfall. Adamjee’s significant exposure to the UAE market placed it at considerable financial risk.
Climate scientists attribute the increasing intensity of such events to human-induced climate change, with studies suggesting that global warming amplified the record rainfall by 10-40%. These findings emphasize the mounting challenges climate change poses to businesses operating in vulnerable regions.