KSA - 8% Increase in the Ins. Sector In 2019
Monday, 07 13 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
SAMA has issued the 13th annual report on the Saudi Insurance Market. The report highlights the performance of the insurance sector in the Kingdom of Saudi Arabia in 2019 and the sector's contribution to the Kingdom's gross domestic product. Below are the highlights:
The insurance sector witnessed growth of circa 8% in 2019, marking the first increase in 3 years, with total written premium reaching SR 37.89 Billion. The increase was led by the Health and Property & Casualty classes. The penetration ratio of the sector increased from 1.20% in 2018 to 1.28% in 2019. Insurance density increased by 5.7% over 2018 to reach SR 1,107. In terms of the underwriting performance, the overall loss ratio remained stable, as improvement in the loss ratio for health insurance were largely offset by an increase in the loss ratio for motor insurance. The net profit (after zakat & tax) for the sector increased more than twice as much over the previous year's corresponding figure, thereby improving the return-on-assets and return-on-equity ratios. The overall Saudization ratio increased from 72% in 2018 to 74% in 2019.