Saudi insurers’ GWPs dropped 3% in Q2: Aljazira Cap

The Saudi insurance sector’s gross written premiums (GWPs) came in at SAR 8.8 billion in the second quarter of 2017, 2.5 percent lower year-on-year (YoY), Aljazira Capital said in a report on Monday.

Health insurance accounts for 46 percent and motor insurance for 38 percent of the sector’s GWPs.

The sector’s net written premiums (NWPs) slipped 1.4 percent YoY, coming in at SAR 2.7 billion.

Net premiums earned (NPEs) stood at SAR 7.2 billion, falling 4.4 percent YoY.

Tawuniya was the biggest player in the sector, with 23.9 percent market share of GWPs, followed by Bupa at 21 percent.

The industry’s retention ratio slightly increased to 82.4 percent, compared to 81.4 percent in Q2 2016.

The quarter’s gross claims paid (GCP) fell by 7.2 percent, coming in at SAR 6.5 billion, and net claims paid (NCP) by 8.3 percent YoY, at SAR 5.8 billion.

Bupa Arabia paid the highest claims of SAR 1.65 billion, followed by Tawuniya at 23.2 percent market share in claims.

Aljazira Takaful paid the lowest claims of SAR 1.6 million and scored the lowest loss ratio and combined ratio of 7.9 percent and 27 percent, respectively.

Health sector accounted for the highest claims at 63 percent, and the motor sector came in second at 33 percent.

Meanwhile, net income for Saudi insurers stood at SAR 197.9 million in Q2, a fall of 54.2 percent YoY. On a sequential basis, net income declined 37.9 percent.

Tawuniya had the highest investment income of SAR 61.2 million, growing by 36.3 percent YoY and 77 percent QoQ.

The insurer also showed the highest surplus from its insurance operations at SAR 208.4 million, faling 5.8 percent YoY and jumping 49.2 percent QoQ.

Elsewhere, Aljazira Takaful showed the highest operating and net margins at 3.1 percent and 34.9 percent, respectively.

Only 7 companies gave out dividends, the report said. Al Sagr Cooperative insurance had the highest dividend yield of 7.4 percent, followed by Tawuniya with dividend yield of 5.4 percent.