Saudi insurers made a combined net income of SAR318.8 million (US$85 million) in 1Q2017, 11.7% higher than the SAR285.5 million posted for the corresponding period last year.
Tawuniya, with a first-quarter net income of SAR142.6 million, accounted for the largest share of gains of 44.7%.
However, the Saudi insurance industry posted GWP of SAR11.5 billion in the first quarter of 2017, down 2.2% y-o-y, Aljazira Capital said in a report on the insurance sector.
Net written premiums stood at SAR9.9 billion, an increase of 3% y-o-y in 1Q2017. Meanwhile, net premium earned amounted to SAR7.4 billion, down by 2.4% y-o-y in the first quarter of this year.
The industry’s retention ratio stood at 86% in 1Q2017, compared to 81.7% in 1Q2016.
Bupa Arabia accounted for the biggest share of 20% of the first quarter’s GWP, followed by Tawuniya with 18%. Bupa Arabia also reported the highest retention ratio of 99% in 1Q, followed by Al Rajhi Takaful at 96.4%.
Gross claims paid stood at SAR6.4 billion, down by 1.4% y-o-y during January to March. Net claims paid in 1Q2017 stood at SAR5.9 billion, a jump of 0.2% y-o-y.
Bupa Arabia paid the highest claims of SAR1.5 billion, whereas Aljazira Takaful paid the lowest claims of SAR7.0 million.
Malath Insurance had the highest loss ratio of 120%, followed by MetLife AIG at 86% in 1Q2017. M
SAR1 = US$0.27