Saudi insurance premiums jump 23% in H1-15: Albilad Capital

Saudi-based insurance companies saw a 23 percent year-on-year (YOY) jump in gross written premiums (GWPs), which reached SAR 19.3 billion by the end of H1-2015, Albilad Capital said in a recent report.

The brokerage firm also projected premiums to hit SAR 36.9 billion by the end of the year as property, casualty, and responsibilities insurance see the most progress due to the growth of real estate finance.

Health insurance was said to be among the main factors fueling the growth in H1-2015, as a 25 percent rise in demand was seen during the period. Auto insurance, which led momentum in the general insurance category, witnessed a 38 percent YOY increase in premiums.

The sector’s retention rate increased by 338 basis points in the first half of this year to 82.17 percent, compared to 78.29 percent in H1-2014.

The health insurance segment accounted for the largest market share of 51 percent, followed by general insurance (47 percent) and protection and saving (two percent).

A total of 14 insurance firms increased their local market share in the first six months of 2015, while 17 saw declines and three insurers maintained the same share.

Bupa Arabia, Tawuniya, and Medgulf accounted for 51 percent of all gross written premiums (GWP) in the first half.

Bupa Arabia saw the biggest gain in market share at 2.7 percent to 20.6 percent. Malath Cooperative Insurance and Reinsurance came second with a 1.7 percent increase.

Medgulf reported the biggest market share reduction at 2.1 percent, followed by Tawuniya with 1.9 percent.