Trade Union's retail products likely to boost Q3 profit, says CEO

Trade Union Cooperative Insurance Co. has recently started to launch retail products, Hussam Al-Qannas, the company's CEO, told Argaam in an exclusive on Thursday, expecting that to boost the company's financial results starting Q3 2018.

The insurer's improved profitability in Q2 2018 came in line with its conservative strategy, which aims to focus on profitable operations and maximize net income.

The gross written premiums (GWPs) in the medical and motor segments posted net profit of SAR 49 million and SAR 156 million, respectively.

Trade Union made more efforts to enhance receivables collection during the second quarter. Accordingly, doubtful debts decreased and reflected positively on the second-quarter figures.

"The company will continue to collect its receivables and lower provisions going forward," Al-Qannas said.

The medical activities were hit by the exit of expatriates, which account for a large number of the Kingdom's population.

Al-Qannas added that while the insurance sector is usually hit by seasonal factors, which impact claims, GWPs and sales, he is optimistic that Trade Union will record similar improvement in productivity and net profit during H2 2018.

Trade Union's first-half net profit before zakat rose to SAR 50.6 million from SAR 33.2 million in year-earlier period.

Commenting on potential mergers in the sector, Al-Qannas added that mergers will benefit insurance activity. In addition, opening the local market to foreign players with strong track records will increase competition.