News Middle East20 Aug 2020

Saudi Arabia:SAMA's maiden quarterly insurance report shows total premiums rise 6% in 1Q2020

| 20 Aug 2020

The Saudi Arabian Monetary Authority (SAMA) has released its maiden quarterly report on the performance of the insurance sector in the kingdom.

The report covers the first quarter of 2020 during which total written premiums grew by more than 6% to SAR12.7bn ($3.4m), compared to the first quarter of 2019.

In its statement, SAMA highlights other aspects of the performance of the insurance sector in 1Q2020 including:

  • Health insurance business grew by 11% to SAR7.65m, increasing its contribution to total premium to 60% from 58.1% in 1Q2019.

  • Motor insurance premiums declined to SAR2.73bn from SAR3.10bn in 1Q2019 because of a fall in the prices of motor insurance policies. This line of business accounted for 21.4% of total premiums in 1Q2020 compared to 26.8% in 1Q2019.

A summary of the 1Q2020 performance of the insurance market is as follows:       

Figures in SAR m

Premium

1Q2020

Premium

1Q2019

Y-oY

Change

Gross written premium

12,744

12,013

+6.4%

Net earned premium

8,138

7,572

+7.5%

Net incurred claims

6,563

6,328

+3.7%

Operating income

(99)

(168)

+40.8%

Investment income

181

285

-36.6%

Income after zakat and tax

82

117

-30.5%

Loss ratio

80.3%

83.4%

improved

 

SAMA says that it has started to release quarterly results as part of its commitment to disclose accurate and up-to-date information on the performance of the insurance sector in Saudi Arabia.

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