The insurance market in Saudi Arabia reported combined net profits of SAR810 million (US$216 million) for the year 2015, up 10.2% y-o-y, according to an annual report released by the Saudi Arabian Monetary Agency (SAMA).
Total premiums reached SAR36.5 billion, an increase of SAR6 billion from SAR30.4 billion in the previous year, representing growth of 19.7%.
Health premiums grew by 20.7% to SAR18.9 billion or 52% of the total insurance market in 2015.
General premiums, excluding health, increased by 19% to SAR16.5 billion in 2015, representing 45% of the total insurance market.
Protection and savings premiums rose by 14.5% to SAR1.04 billion, representing 3% of the total insurance market.
The retention rate increased to 83% in 2015 compared to 79.8% in the previous year.
Total claims paid amounted to SAR24.5 billion in 2015, increasing by 20.7% compared to SAR20.3 billion in 2014. Health insurance accounted for 53% of the total claims while vehicle insurance accounted for 30.8%.
Underwriting profits amounted to SAR963 million in 2015, 48% higher than the SAR651 million reported for 2014.
1Q16 premiums grew 10% led by motor
Meanwhile, premiums rose 10% for the first quarter of this 2016 to SAR11.3 billion (US$3 billion), compared to the corresponding quarter in 2015, according to industry data.
The increase was driven mainly by vehicle insurance where premiums surged by 25.8% in 1Q. The share of motor insurance rose to 38% of total market premiums for the first quarter, compared with 29% in 2015.
Still, health insurance contributed the biggest premium volume although its market share fell to 48% of total premiums written in the market in 1Q, compared to 52% at the end of 2015.
SAR1 = US$0.27