Al-Etihad Insurance to see stronger profit in 2024: CEO

Al-Etihad Cooperative Insurance Co. is set to achieve growth in its written premiums and stronger profit in 2024 compared to last year, which witnessed exceptional profit, said CEO Hossam Abdulaziz Al-Kannas.
 

In an interview with CNBC Arabia TV, the top executive indicated that the company has a diversified portfolio that includes the corporate segment and the retail insurance portfolio, expecting that the company's portfolio revenues from the corporate segment will represent the largest part of the total revenues in 2024.
 

Al-Kannas also said that Al-Etihad Insurance has huge liquidity and an investment portfolio exceeding SAR 1.3 billion, with a solvency margin exceeding 200%, noting that the company occupies the eighth place in terms of market share among insurers in Saudi Arabia.
 

As for the company's continued distribution of dividends in 2024, Al-Qannas said: "As long as the company is moving forward in generating profit, this may be reflected on shareholders, whether through cash distributions or capitalization of retained earnings. The decision is ultimately up to the company's general assembly".

Commenting on the contract signed with the Ministry of Human Resources and Social Development, the CEO stated that the contract includes 19 insurance and reinsurance companies in partnership with Al-Etihad Insurance, adding that the company's share represents more than 53% of the contract.
 

According to Argaam data, the HRSD Ministry and the Insurance Authority launched yesterday the insurance product to cover the dues of expatriate workers in private segment establishments in the event of default; with the aim of protecting them and reducing the impact of not obtaining their financial rights, in the event that establishments default and are unable to commit to paying wages for a specific period.
 

The company signed yesterday a one-year contract worth SAR 391.25 million with the HRSD Ministry, for insurance coverage of the financial dues of non-Saudi workers in the private segment, as per the agreed terms and conditions as well as the insurance policy approved by the Insurance Authority.