Saudi Arabia: Increased claims and technical reserves drag Tawuniya into the red in 2017

Source: Middle East Insurance Review | Apr 2018

Saudi Arabia’s largest insurer, the Company for Cooperative Insurance (Tawuniya) has reported a net loss before zakat of SAR146.5 million (US$39.1 million) for the financial year ended 31 December 2017.

The net result contrasts with a net profit of SAR800.9 million in 2016 due to a 33.2% increase in net claims incurred.

Gross contributions increased by 4.4% to SAR8,407 million in 2017. Net written premiums rose by 3.4% to SAR7,315 million. However, net incurred claims, including an increase in net additional technical reserves, surged by 33.2% to SAR6,796 million.

The company had posted profits for the first three quarters of the year, but its results turned red in the last quarter to the extent of SAR715.3 million compared to a net profit of SAR212.2 million in 4Q2016.

Tawuniya, which was founded in 1986 in Riyadh, is the first licensed national insurer in the Kingdom. M

SAR1 = US$0.27

Comment | Print

Name*

Email*

Comment*

Code Verification*

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.