A study conducted by Argaam on the Saudi insurance companies during 2013 showed that the 33 Saudi listed companies recorded SAR 1378m of losses for 2013 compared to SAR 593 of profit for 2012.

The insurance companies have enhanced their technical reserves (claims provisions) during Q4 of 2013 depending on the actuarial reports in line with the amended regulations and policies by the Saudi Arabian Monetary Agency “SAMA” which contributed negatively to the results of these companies.

Tawuniya insurance, the market’s largest insurance company, recorded SAR 590.9m of losses followed by Medgulf at 197.3 compared to a profit of SAR 319.7m and SAR 170.2m respectively in 2012.

Tawuniya, Medgulf, Saudi Reinsurance, Arabia Insurance, Solidarity and United Assurance have topped the list of recorded losses for 2013.

 12 companies have recorded gains in 2013; 3 of which have achieved lower profits; on the other hand 21 companies have achieved higher losses during 2013.

 

Profits of insurance companies (Million SAR)*

Change

Year

Period

2013

2012

+ 17 %

132.9

113.9

Bupa Arabia

+ 81 %

50.9

28.1

SAGR INSURANCE

+ 35 %

21.7

16.0

Walaa Insurance

+ 128 %

12.9

5.7

AXA-Cooperative

+ 15 %

11.9

(23.5)

United Group for Cooperative Insurance

( ACIG)

(%46)

11.6

21.6

ACE Insurance Cooperative

+ 20 %

10.2

8.5

SABB Takaful

+ 21 %

8.8

7.3

Allianz Saudi Fransi Cooperative Insurance

+ 530 %

5.3

(1.2)

AL-Ahli Takaful

+ 127 %

5.0

(19.0)

BURUJ Cooperative Insurance

(%64)

3.8

10.7

Gulf General Insurance

(%46)

2.2

4.1

Arabian Shield

+ 52 %

(7.7)

(16.0)

WAFA Insurance

+ 82 %

(8.2)

(44.8)

AMANA Insurance

(%256)

(18.5)

11.8

Al-Ahlia Insurance

(%3752)

(22.3)

(0.6)

Al Rajhi for Cooperative Insurance

(%3594)

(24.1)

0.7

AL Alamiya Insurance

(%288)

(27.0)

14.3

Saudi Arabia for Cooperative Insurance ( Seiko)

(%486)

(27.2)

7.1

Gulf Union Insurance

(%318)

(30.6)

(7.3)

Sanad Insurance

(%472)

(31.7)

8.5

Wataniya Insurance

+ 21 %

(33.2)

(42.1)

Tokyo Marina Development

(%237)

(41.8)

30.5

MALATH

(%225)

(42.1)

(13.0)

SALAMA Insurance

(%357)

(42.8)

16.7

Trade Union Insurance

(%53)

(56.5)

(36.9)

Enaya Insurance

(%573)

(57.6)

12.2

Weqaya Insurance

(%473)

(84.1)

22.6

United Insurance

(%158)

(91.0)

(35.3)

Solidarity Saudi

(%1520)

(103.3)

(6.4)

Arab Cooperative

(%1405)

(117.2)

9.0

Saudi Reinsurance

(%216)

(197.3)

170.2

MEDGULF

(%285)

(590.9)

319.7

Tawuniya

--

( 1378.0 )

593.0

Total
* Except for the company, "Jazerra Takaful cooperative" and "Arab Insurance" (MetLife), newly established companies.


Written premiums rise by 20% at SAR 25.02bn

The written premiums rised by 20% at SAR 25.02bn in 2013 compared to SAR 20.87bn in 2012.

25 out of 33 companies achieved growth in gross written premiums in 2013 and on the other hand 8 companies recorded a decline of those premiums during the same period.

 

Total insurance premiums (Million SAR)

Change

Year

Period

2013

2012

( 1 % )

5605.0

5634.6

Tawuniya

+ 25 %

4137.5

3318.0

MEDGULF

+ 45 %

3177.5

2194.3

Bupa Arabia

+ 26 %

1293.0

1024.1

United Insurance

+ 56 %

877.2

560.8

Trade Union Insurance

+ 68 %

775.6

460.5

AXA-Cooperative

+ 38 %

770.9

558.1

MALATH

+ 20 %

745.9

621.2

Allianz Saudi Fransi Cooperative Insurance

+ 15 %

689.7

600.9

Al Rajhi for Cooperative Insurance

+ 10 %

624.0

567.9

Saudi Arabia for Cooperative Insurance ( Seiko)

( 10 % )

586.3

653.9

Arab Cooperative

+ 34 %

486.8

363.9

Wataniya Insurance

+ 71 %

420.1

245.0

Saudi Reinsurance

( 7 % )

387.5

417.5

Gulf Union Insurance

( 0 % )

370.1

370.6

Gulf General Insurance

+ 22 %

351.0

286.6

Weqaya Insurance

+ 48 %

347.2

234.1

Walaa Insurance

+ 86 %

347.0

186.8

United Group for Cooperative Insurance

( ACIG)

+ 1 %

333.3

331.5

Arabian Shield

+ 33 %

330.9

248.1

AL Alamiya Insurance

+ 20 %

279.3

233.5

BURUJ Cooperative Insurance

( 20 % )

263.1

327.2

SAGR INSURANCE

+ 19 %

249.1

208.6

ACE Insurance Cooperative

+ 24 %

228.0

183.5

Sanad Insurance

( 7 % )

219.5

235.6

Al-Ahlia Insurance

+ 7 %

218.3

204.3

SALAMA Insurance

+ 728 %

204.6

24.7

Solidarity Saudi

+ 21 %

196.9

162.5

WAFA Insurance

( 9 % )

183.1

201.4

SABB Takaful

( 9 % )

140.2

153.5

AL-Ahli Takaful

+ 54 %

83.4

54.1

AMANA Insurance

+ 15330 %

50.9

*0.3

Tokyo Marina Development

--

49.7

--

Enaya Insurance

+ 20 %

25022.4

**20867.8

Total
* Includes the period from June 9, 2012 to December 31, 2012.

** Total does not include Premiums Company Enaya insurance” and “Development Tokyo Marina, newly established

 

76% Average retention rate for insurance premiums:

The average retention rate for all Saudi insurance companies reached 76% in 2013, the rate which ranged from 22% to 97% for the companies under study.

SAMA requires a minimum retention ratio of 30% for the licensed insurance companies according to Article 40 of the Implementing Rules of the Cooperative Insurance Companies Control Law, the same article also requires corporates to re-insure at least 30% of gross written premiums.

Insurance retention rates are usually affected by the high rates of vehicle insurance and health insurance that constitute the largest proportion of gross written premiums.

Bupa has led the companies with the highest retention rate of 97% followed by Salama at 93% with Al Ahli Takaful having the lowest retention ratio at 22%.

 

Retention rates for insurance premiums in 2013

Retention percentage

2013

Period

Net premiums

Total insurance premiums

% 97

3097.9

3177.5

Bupa Arabia

% 93

202.9

218.3

SALAMA Insurance

% 92

385.8

420.1

Saudi Reinsurance

% 90

316.2

351.0

Weqaya Insurance

% 87

671.1

775.6

AXA-Cooperative

% 86

157.1

183.1

SABB Takaful

% 86

660.3

770.9

MALATH

% 83

4641.5

5605.0

Allianz Saudi Fransi Cooperative Insurance

% 81

555.8

689.7

Al Rajhi for Cooperative Insurance

% 80

175.6

219.5

Al-Ahlia Insurance

% 79

179.3

228.0

Sanad Insurance

% 77

202.7

263.1

SAGR INSURANCE

% 74

651.1

877.2

Trade Union Insurance

% 71

198.7

279.3

BURUJ Cooperative Insurance

% 71

145.0

204.6

Solidarity Saudi

% 70

2892.3

4137.5

MEDGULF

% 68

234.5

347.0

United Group for Cooperative Insurance

( ACIG)

% 68

873.3

1293.0

United Insurance

% 66

54.8

83.4

AMANA Insurance

% 64

377.6

586.3

Arab Cooperative

% 63

211.3

333.3

Arabian Shield

% 62

121.9

196.9

WAFA Insurance

% 60

376.3

624.0

Saudi Arabia for Cooperative Insurance ( Seiko)

% 56

27.9

49.7

Enaya Insurance

% 56

193.4

347.2

Walaa Insurance

% 54

403.0

745.9

Allianz Saudi Fransi Cooperative Insurance

% 54

208.1

387.5

Gulf Union Insurance

% 51

248.2

486.8

Wataniya Insurance

% 48

159.7

330.9

AL Alamiya Insurance

% 47

173.1

370.1

Gulf General Insurance

% 46

114.7

249.1

ACE Insurance Cooperative

% 42

21.2

50.9

Tokyo Marina Development

% 22

31.0

140.2

AL-Ahli Takaful

76 %

18963.3

25022.4

Total
 

Incurred claims reach SAR 16.08bn:

Insurance companies incurred claims of SAR 16.08bn in 2013 compared to SAR 11.05bn in 2012 (46% increase).

Insurance incurred claims are the amounts paid by the insurance company to policyholders as compensation for their exposure to risks of losses according to the conditions of the policy.

The incurred claims are usually associated with the size of written premiums, where the total claims incurred during the year of 2013 reached 64% of the gross written premiums.

While the incurred claims of 29 companies have increased, they have decreased for 4 other companies.

 

Claims incurred (million SAR)

Change

Year

Period

2013

2012

+ 51 %

4882.8

3231.7

Tawuniya

+ 45 %

2632.2

1819.5

MEDGULF

+ 23 %

2094.4

1701.1

Bupa Arabia

+ 23 %

869.2

709.2

United Insurance

+ 77 %

559.1

315.9

MALATH

+ 101 %

538.4

267.7

AXA-Cooperative

+ 46 %

461.9

315.5

Arab Cooperative

+ 35 %

427.8

316.1

Al Rajhi for Cooperative Insurance

+ 64 %

391.5

239.3

Trade Union Insurance

+ 216 %

312.2

98.9

Weqaya Insurance

+ 51 %

311.7

206.3

Saudi Arabia for Cooperative Insurance ( Seiko)

+ 226 %

300.3

92.2

Saudi Reinsurance

+ 14 %

233.0

203.5

Allianz Saudi Fransi Cooperative Insurance

+ 238 %

228.6

67.7

Wataniya Insurance

+ 9 %

181.2

165.5

Gulf Union Insurance

+ 17 %

180.4

154.3

SALAMA Insurance

(%2)

178.6

181.5

Arabian Shield

+ 20 %

151.3

126.4

SAGR INSURANCE

+ 35 %

136.0

100.5

United Group for Cooperative Insurance

( ACIG)

+ 94 %

135.0

69.6

AL Alamiya Insurance

+ 10 %

129.8

117.7

Gulf General Insurance

+ 33 %

123.3

92.5

Sanad Insurance

(%0)

118.5

118.7

BURUJ Cooperative Insurance

+ 9 %

110.4

101.4

Walaa Insurance

+ 16 %

93.2

80.6

Al-Ahlia Insurance

+ 2553 %

88.4

3.3

Solidarity Saudi

+ 50 %

84.7

56.4

WAFA Insurance

+ 32 %

69.0

52.3

ACE Insurance Cooperative

(2 %)

31.4

32.0

AMANA Insurance

--

10.6

--

Enaya Insurance

+ 460 %

10.6

**1.9

Tokyo Marina Development

+ 17 %

8.6

7.3

SABB Takaful

(23 %)

0.6

0.8

AL-Ahli Takaful

+ 46 %

16084.3

*11047.5

Total
** Does not include net claims incurred to the company "Enaya insurance" newly established company.

* Include the period from June 9, 2012 to December 31, 2012.

 

The companies under study have recorded an insurance operation’s deficit of SAR 1730.9m in 2013 after deducting the investment returns compared to a surplus of SAR 687.2m in 2012.

23 companies recorded a deficit while 10 companies recorded a surplus.

 

Surplus / deficit from insurance operations after deducting the return on investment (Million SAR)

Change

Year

Period

2013

2012

(% 1 )

129.7

131.2

Bupa Arabia

(% 11 )

64.1

71.7

Al Rajhi for Cooperative Insurance

+ 122 %

59.0

26.6

SAGR INSURANCE

(% 38 )

19.2

31.0

ACE Insurance Cooperative

+ 9 %

13.6

12.5

SABB Takaful

+ 146 %

10.3

( 22.4 )

United Group for Cooperative Insurance

( ACIG)

+ 155 %

6.3

2.5

AL-Ahli Takaful

+ 57 %

6.2

4.0

AXA-Cooperative

(% 48 )

3.7

7.2

Arabian Shield

(% 88 )

2.1

17.6

Gulf General Insurance

(%101)

( 0.1 )

14.4

Walaa Insurance

(% 342 )

( 5.6 )

( 1.3 )

Allianz Saudi Fransi Cooperative Insurance

+ 8 %

(11.6)

( 12.6 )

WAFA Insurance

(% 207 )

(15.5)

14.4

Al-Ahlia Insurance

(% 37 )

(18.4)

( 13.5 )

BURUJ Cooperative Insurance

(% 567 )

(21.2)

4.5

AL Alamiya Insurance

(% 393 )

(24.8)

8.4

Gulf Union Insurance

(% 243 )

( 26.7 )

18.6

Saudi Arabia for Cooperative Insurance ( Seiko)

+ 25 %

( 26.8 )

( 35.8 )

AMANA Insurance

(% 301 )

( 29.6 )

14.7

Sanad Insurance

(% 621 )

( 40.4 )

( 5.6 )

Wataniya Insurance

--

 ( 40.8 )

--

Tokyo Marina Development

(% 285 )

( 40.8 )

22.1

MALATH

(%189)

( 50.0 )

( 17.3 )

SALAMA Insurance

--

( 54.0 )

--

Enaya Insurance

(% 1229 )

( 58.9 )

5.2

Trade Union Insurance

(% 4059 )

( 82.2 )

2.1

Weqaya Insurance

(% 576 )

( 91.5 )

19.2

United Insurance

(% 993 )

( 124.5 )

( 11.4 )

Arab Cooperative

(% 147 )

( 124.8 )

( 50.5 )

Solidarity Saudi

(% 1725 )

( 140.3 )

8.6

Saudi Reinsurance

(% 201 )

( 204.2 )

202.9

MEDGULF

(% 473 )

( 812.5 )

218.0

Tawuniya

( 352 %)

( 1730.9)

*687.2

Total
* Total does not include Enaya insurance company” and “Development Tokyo Marina company, newly established.

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