Chubb Arabia eyes steady growth in 2019: chairman

Chubb Arabia Cooperative Insurance Co. is looking to maintain steady growth this year and improve its performance in the near term, chairman Abdullah Al-Khereji told Argaam in an exclusive.

The company reported strong results for 2018, with net profit before zakat rising to SAR 44.5 million from SAR 37.7 million a year earlier.

Chubb did not allocate additional provisions, except for those directed by the actuarial expert. The company has adequate provisions, Al-Khereji said.

The market lacks positive catalysts for insurers’ consolidation, as mergers with financially-distressed firms would prove unfeasible.

“Chubb’s board of directors have discussed potential mergers, but no talks were initiated with any insurer. The company will only embark on consolidations, if a planned merger will contribute to its business integration, expand its geographical reach or add value to its shareholders,” he added.

The local insurance sector is facing serval challenges. However, strengthening the market will help players achieve target growth in line with the Saudi Vision 2030.

Insurance firms are also impacted by the conflict of interest and decisions by several competent authorities.

“The Saudi insurance sector could be bolstered by government support, so that it can overcome a decline in the number of insured motors and frauds,” Al- Khereji noted.