Al-Etihad Insurance to swing back to profit in H2 2022: CEO

Hassom Abdulaziz Alkannas, CEO of Al-Etihad Cooperative Insurance Co., said that the first half of 2022 saw a surge in auto and health insurance by 95% and 63%, respectively, due to several factors, mainly the rise in prices across the sector.

Upon the return to normal life, insurance claims moved back to their previous levels, and even to higher levels than before COVID, which forced insurance firms to raise their prices, he told CNBC Arabia.

He expects his company to swing back to profitability in the second half of 2022 and to close the year on a positive note, thus outperforming in next year.

The market share of Al-Etihad Insurance saw a relative increase. Meanwhile, inflation weighted on production and led to lower profit across the sector, according to Alkannas.

He added that, following the impact of the pandemic, insurance firms are required to adjust their prices and premiums collected from end consumers.

The company is closely monitoring the market and available investment channels, said Alkannas, adding that it is constantly amending the mechanism of distribution its investment portfolio.

The top official also noted that the capital increase will go for expanding the company's products, both for retail and corporate insurance, in addition to supporting the company's infrastructure related to investment, technology and digital transformation, as well as raising retention rates and thus reducing reliance on reinsurers.

The insurer swung to a net loss of SAR 5.8 million for the first half of 2022, against a net profit of SAR 26.8 million in the same period last year, according to Argaam's data.