Aljazira Takaful CEO says Solidarity merger costs recognized in Q4 2020 financials

Sager Nadershah, Managing Director & CEO of Aljazira Takaful Taawuni Co.

Aljazira Takaful Taawuni Co.’s managing director & CEO, Sager Nadershah, said the costs of merger with Solidarity Saudi Takaful Co. were included in Q4 2020 financial statements, as the company pays invoices upon maturity.

Aljazira Takaful maintained steady growth throughout the year, he told Argaam in a telephone interview.

The insurer’s portfolio expanded by 80% year-on-year as gross written premiums (GWPs) reached SAR 233.9 million. Net underwriting income also surged by 69%, or SAR 26 million, compared to the previous year.

“Following the merger, the company’s financial position is very solid. It has SAR 470 million capital and SAR 85 million in retained earnings,” the CEO added.

Aljazira Takaful is targeting a 7% market share of the insurance sector over the next five years. It currently accounts for 24% of the protection and savings products.

Moreover, the company is reconsidering its policies and business measures. It aims to help Solidarity return to profitability as of the first quarter of this year, after the SAR 70 million losses it incurred in 2020, he concluded.

Aljazira Takaful’s net profit before Zakat rose 6% to SAR 40 million in 2020, compared to SAR 37.8 million in 2019, Argaam reported.

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