Total profits attributed to shareholders before zakat and tax generated by 29 listed insurance companies in Saudi Arabia amounted to SAR211.56m ($56.4m) for 1Q2021, representing an increase of 27% over the SAR166.95m for the corresponding quarter of 2020, according to a report by Badri Management Consultancy, an actuarial consulting firm in the Middle East.
The report, “Saudi Arabia's Insurance Industry Performance Analysis –1 Q2021” shows that health insurer Bupa booked the highest profit in 1Q2021 of SAR175.42m as compared to a profit of SAR125.66m for the corresponding period in 2020.
Gulf Union Al Ahlia posted the highest loss of SAR56.80m in 1Q2021, 9.3 times the loss of SAR6.10m in 1Q2020.
For the 29 listed companies, GWP grew marginally by 1.8% to SAR 12.8bn in 1Q2021. If the financial results of Saudi Re were excluded, the GWP of the industry would have grown by 1.6% to SAR12.4bn in 1Q2021.
The top five companies in terms of GWP in 1Q2021 commanded an aggregate market share of 69% with combined premiums of SAR8.78bn. The five companies were Bupa, Tawuniya, Medgulf, Saudi Re and Al-Rajhi.
The fastest GWP growth in 1Q2021 was shown by Saudi Re with an increase of 58% in premiums compared to the corresponding period of 2020. The largest decline in GWP in 1Q2021 was shown by United Cooperative Assurance with a decrease of 52% compared to the corresponding period of 2020.
The weighted average retention ratio for the listed insurers stood at 86% for 1Q2021 compared to 82% for the whole of 2020.