Trade Union’s deal with Kafalah to positively impact results: CEO

Trade Union Cooperative Insurance Co.’s agency agreement with Kafalh Insurance Agency Co. is expected to show a positive impact on the firm’s financial results starting next week, CEO Hussam Al-Kannas told CNBC Arabia.

Trade Union signed the deal as a result of the changed policy it adopted mid-2018 to target the retail sector, he said.

The insurance sector in general is seeing a downtrend - especially medical insurance - and it’s expected to continue in the fourth quarter, he said.

The firm’s Q3 net profit was lifted by lower incurred claims, lower general and administrative expenses, and a decrease in policy acquisition costs.

Efforts to collect outstanding receivables have lowered the provision of doubtful debt, he said.

Investment performance improved for both shareholders and policyholders, which also boosted profit, he added.

According to data compiled by Argaam, Trade Union reported a net profit of SAR 31.22 million for Q3 2018, almost 87 percent year-on-year (YoY) increase.