ACIG's Q2 figures buoyed by lower net incurred claims, says CEO

Allied Cooperative Insurance Group's (ACIG) Q2 2020 profit was mainly backed by a 30% slump in net incurred claims, Chief Executive Officer Hesham Al Shareef told Argaam.

"Q2 higher profit was driven by implementing growth strategies in line with the market developments, while maintaining robust performance as well as operating efficiency," Al Shareef said, adding that other factors like higher gross written premiums (GWPs) and lower general and administrative expenses helped boost profitability in the three-month period.

The compulsory auto insurance decision in the Kingdom is considered positive in the long term, as it will help boost the insurance density, Al Shareef noted, indicating that it is early to expect any relevant financial impact.

"ACIG will soon introduce an array of innovative and top-notch insurance products to help increase its market share in addition to developing more communication methods and after-sale services," the CEO added.

ACIG's net profit before Zakat increased 76% year-on-year (YoY) to SAR 10 million in H1 2020, Argaam reported.