News Middle East22 Apr 2021

Saudi Arabia:29 insurers post aggregate GWP of over US$10bn in 2020

| 22 Apr 2021

The 29 listed insurance companies on the Saudi bourse reported an aggregate GWP of SAR38.3bn ($10.2bn) in the year ended 31 December 2020, 3.5% higher than in 2019, according to an analysis by regional boutique actuarial consulting firm, Badri Management Consultancy.

If Saudi Re was excluded from the 29, the GWP of the industry would have increased to SAR37bn in 2020 from SAR36bn 2019, says the report.

The top five insurers in terms of GWP in 2020 were:

Insurer

GWP in SAR

Bupa

10,447,353,000

Tawuniya

9,068,435,000

Al-Rajhi

2,732,873,000

MedGulf

2,534,501,000

Walaa

1,472,703,000

Source: Badri

The five biggest insurance companies have a combined premium of SAR26.2bn in 2020 as compared to SAR25bn in 2019. They have the same rankings in 2020 and 2019, except for MedGulf which was in 8th position in 2019 but jumped to 4th place in 2020, displacing AXA.

The fastest GWP growth in 2020 was shown by Al-Ahli with an increase of 178% in premiums compared to 2019. The steepest decline in GWP was seen in Buruj with a decrease of 34% in premiums.

The five insurers with the lowest GWP in 2020 were:

Insurer

GWP in SAR

Al Jazira

233,934,000

Buruj

202,251,926

SABB

201,681,000

Al Alamiya

191,170,000

Enaya

165,874,000

Source: Badri

Merged insurers

Solidarity Saudi Takaful Company (SSTC) and Al Ahlia Cooperative Insurance have been taken over/ merged with other entities. In order to give full-year comparisons of the top line for the Saudi insurance industry, Badri estimated the GWP for both these companies. The merger of Al Ahlia with Gulf Union took place in December 2020 while SSTC’s merger with Al Jazira Takaful Taawuni Co became effective in 2021. However, SSTC and Al Ahlia are not required to publish their financials.

If the estimates for SSTC and Al Ahlia for 2020 were included so as to provide a like for like comparison against 2019, then for the 31 listed companies, GWP would have grown from SAR37.5bn in 2019 to SAR38.9bn in 2020, representing growth of 3.5%.

Another insurer, Saudi Indian Company for Cooperative Insurance, announced its inability to publish its financials for 2020.

 

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