Saudi Arabia: Insurance industry profits more than double for first 9 months
Source: Middle East Insurance Review | Dec 2016
The combined profits of insurance companies in Saudi Arabia soared by 115% to SAR1.5 billion (US$400 million) for the first nine months of this year compared to SAR705 million for the corresponding period last year.
The results were from those of 33 insurance companies. Only one insurer was excluded from the total because it had yet to file its 3Q financial statements, reported the online financial publication, Argaam. A total of 27 insurers reported profits for the nine-month period while six showed losses.
The insurers reported total profits of SAR805 million in the third quarter alone, exceeding the combined profits made in the first two quarters of the year. In the first quarter, profits were SAR290 million, while second quarter gains totalled SAR432 million.
An insurance consultant told the newspaper Al Madina that the good results of the insurance industry were due to higher premium rates and lower claims.
The three insurers with the most profits for the first nine months of this year were: The Company for Cooperative Insurance (Tawuniya), Bupa Arabia and Falcon Insurance. Together, the three companies accounted for around SAR1.1 billion or 72% of the industry’s combined profits for the first nine months.
SAR1 = US$0.27