Tawuniya generates 40% of earnings from investments: CFO

Logo of The Company for Cooperative Insurance (Tawuniya)

The Company for Cooperative Insurance (Tawuniya) generated 60% of 2022 earnings from operations, while 40% was recorded from investments, Al Arabiya TV reported, citing CFO Ammr Kurdi.

He added that premiums reached a lifetime high in 2022, noting that the company's available liquidity exceeded SAR 1 billion.

The profit growth was driven by the package of services provided and use of topnotch pricing technology.

Saudi Arabia is one of the most promising markets, the official said, indicating that the insurance sector constitutes only 1.6% of GDP, and its ceiling is still very high in terms of growth.

Kurdi expected the company to post higher profit and revenue this year, similar to 2022 levels.

Commenting on the mergers and acquisitions (M&As), the official said the sector is in need of several M&As, as they mainly aim to maximize earnings for shareholders but the opportunities are limited despite being available.

Tawuniya reported a net profit of SAR 391.3 million in 2022, an increase of 47% from SAR 266.6 million in the year-ago period. In Q4 2022, the insurance services provider swung to a net profit of SAR 68.9 million, according to data available with Argaam.