The Insurance Authority (AI) has approved on 2 June an application from Salama Cooperative Insurance Company to increase its capital by SAR100m ($26.7m) via a rights issue.
Howden, the global insurance intermediary group, and Allianz Trade, the world's leading trade credit insurer, have announced the signing of an Initial Framework Agreement with Saudi EXIM Bank to provide Credit and Political Risk insurance to exporters willing to seize business opportunities in Saudi Arabia through its Vision 2030 plan.
Increased deal volume and sophistication in Saudi Arabia, the recent slowdown of dealmaking in the more traditional markets of the United States and United Kingdom, and the increase in in-bound foreign investment have collectively resulted in a clear uptick in the usage of warranty and indemnity insurance (W&I Insurance) in Saudi Arabian transactions, says the global law firm, Kirkland & Ellis.
The new minimum capital requirement of SAR300m ($80m) for insurance companies in Saudi Arabia by the end of 2024 puts at least five insurers on the radar, according to Insurance Monitor, a research and consulting firm.
Motor insurance premiums in Saudi Arabia achieved a record level of about SAR14.3bn ($3.81bn) in 2023, jumping by 38% compared to 2022, according to a study by the Financial Analysis Unit of the publication Al-Eqtisadiah.
Saudi Insurance, a body representing the interests of insurance companies in the kingdom, has established a cyber security sub-committee, following approval from the Insurance Authority.
The record profitability (after zakat & tax) seen in the insurance industry in 2023 has continued in 2024 with the sector reporting a 48% upsurge in net profits to SAR879m ($234m) in 1Q2024 from SAR594m in 1Q2023, says Badri Management Cosultancy.
With the launch of cultural insurance in April 2024 in Saudi Arabia covering artworks and cultural assets, insurance companies are beginning to provide insurance products for the cultural and heritage sector, according to the official spokesman for the Saudi Ministry of Culture, Mr Abdulrahman Almutawa.
Wataniya Insurance Company has reported a significantly improved net profit of SAR85m ($22.7m) in 2023 (under IFRS17 accounting standards) versus a net loss of SAR28m in 2022, notes Fitch Ratings.
Saudi Reinsurance Company (Saudi Re) has posted a net profit after zakat of SAR31.8m ($8.5m) for 1Q2024, almost three times the SAR11.2m for the corresponding quarter in 2023, with growth of 184%.