KSA – SAR 12.7 bn the value of market ins. premiums in Q1
Monday, 06 22 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
The value of the written premiums of the insurance companies listed during the first quarter of this year amounted to 12.74 billion riyals, registering a growth of 6.1 percent, equivalent to 734 million riyals, compared to about 12.01 billion riyals during the same period last year.
Despite the growth of written premiums during the first quarter, which recorded the highest quarterly premiums since 2009, the profits of insurance companies listed in the Saudi stock market during the first three months of this year, after Zakat, decreased by about a quarter, on an annual basis.
According to the monitoring unit of the reports in the “Al-Iqtisadiya” newspaper, based on the data of the listed companies, the insurance companies listed in the Saudi stock market achieved net profits after Zakat during the first quarter of 2020 by about 83.2 million riyals, compared to 113.1 million riyals for the same period last year, where Profits fell by 26.4 percent, or the equivalent of 29.9 million riyals.
The decline in net profit, after zakat, comes to six companies achieving a net loss compared to a net profit for the same period, as well as an increase in the losses of four companies, despite the growth in the profits of half of the listed companies, which included the top five.
Profits before zakat declined to 179.3 million riyals for the first quarter of 2020 compared to 214.6 million riyals for the same period, and by about 16 percent, or a difference of 35.3 million riyals.
According to the monitoring, three insurance companies accounted for about 57.3 percent of the total written premiums during the first quarter of this year, and by about 7.3 billion riyals, which are “Bupa Arabia” and “Cooperative”, as well as “Med Gulf”, where its shares amounted to 27.2 and 20 .2 and 9.9%, respectively.
“Al-Rajhi Takaful” comes fourth in terms of market share, as it constitutes 6.2 percent, at a value of 787.5 million riyals. Fifthly, “AXA Cooperative”, with a 4.3 percent market share, with a value of 544.3 million riyals.
The total written premiums of insurance companies is defined as the income or premiums due according to the insurance policies issued by the company, that is, it represents what the “insured” pays to the company in exchange for its agreement to compensate the insured for the damage or loss that is the direct cause of its occurrence.
Insurance premiums compared to the previous quarter, “Fourth Quarter 2019”, grew by about 45.6%, as the insurance premiums reached about 8.75 billion riyals at the time. It is known that the first quarter period is the seasonal period for insurance companies, as it constitutes about a third of the total premiums written for the whole year.