Saudi Arabia: Tawuniya back in the black
Source: Middle East Insurance Review | Mar 2015
The Company for Cooperative Insurance (Tawuniya), Saudi Arabia’s biggest insurance company, exceeded SAR600 million (US$160 million) in profits for 2014, bouncing back from its net loss of SAR464 million in the previous year.
Net income amounted to SAR602 million for the year ended 31 December 2014, the company said in a statement. Its net loss in 2013 was attributed to an increase in technical reserves.
GWP reached SAR6.2 billion compared to SAR5.6 billion in 2013, representing a growth rate of 11%.
Tawuniya’s CEO Raeed Tamimi said that the operating and investment performance had dramatically increased during 2014 as a result of sound initiatives implemented by the company.
He noted that the claims control strategy implemented by Tawuniya led to a sharp decline of 23% in the net claims incurred to SAR3.76 billion for 2014 compared to SAR4.88 billion incurred by the company in 2013. The investment policy implemented in 2014 resulted in a net income of SAR180 million from shareholders’ investment, in addition to SAR43 million as net profits earned from policyholders’ investments.
Mr Tamimi, who assumed the CEO role last April, added that the results were achieved due to the company’s success in overcoming the challenges and difficulties encountered during 2013. These included intense competition given the large number of insurance companies in the Kingdom as well as new technical reserve calculations.
Tawuniya increased its paid-up capital from SAR750 million to SAR1 billion in 2013.
SAR1 = US$0.27