Saudi Re posted a 30.1% increase in GWP to SAR659.1m ($175.7m) for the first half of this year, compared to the corresponding period last year, according to interim financial statements filed with the stock exchange, Tadawul.
Net incurred claims fell by 23.3% to SAR159.7m in the first six months of the year.
Despite the higher GWP and lower net incurred claims in 1H2020, the reinsurer saw a 55% plunge in net profits before zakat to SAR19.3mn for the period, compared to SAR42.6m for 1H2019.
Saudi Re said, “The reason for the decrease in net income for the current period for the year 2020, versus the same period of 2019, was mainly due to the decrease in shareholders' net investment income by 55% and the decrease in policyholders' net investment income by 49%.”
Shareholders' net investment income plunged to SAR16.3m in 1H2020 from SAR36.1m in 1H2019 while net gains from investments of policyholders' funds fell to SAR2m in 1H2020 from SAR3.9m in 1H2019.