Saudi insurance sectors net income shrinks 69% in Q4-20 Aljazira Capital

Net income before Zakat totalled SAR 266.2 million in Q4-20, reflecting a decline of 35.2% YoY, according to a report by Aljazira Capital on Sunday.

The sector’s gross written premiums (GWP) stood at SAR 8.4 billion in Q4-20, posting an annual decline of 0.7%. Net written premiums (NWP) have increased by 4.6% YoY to SAR 6.9 billion in the last quarter of 2020.

Saudi insurance sector’s net premium earned (NPE) in Q4-20 totalled SAR 7.7 billion, indicating an annual rise of 0.3%.

Bupa Arabia for Cooperative Insurance Company achieved a net income of SAR 68.9 million during the October-December 2020 period, as compared to SAR 105.7 million in Q4-19. The company showed the highest surplus from its insurance operations at SAR 79.6 million in Q4-20.

Bupa Arabia has recorded a YoY increase of 15.6% in net profits before Zakat to SAR 823.7 million in 2020, compared with SAR 712.7 million. The listed firm showed the highest return on assets (RoA) of 6.4%.

Al Rajhi Company for Cooperative Insurance posted the highest investment income of SAR 78.1 million in the sector, up by 8.8% YoY. The company posted the highest return on equity (RoE) of 22.8%.

Buruj Cooperative Insurance Company registered the highest operating margin at 1.9%, while Aljazira Takaful Taawuni Co. posted the highest net margin of 16.6%.

The Company for Cooperative Insurance (Tawuniya) was the biggest player during Q4-20 with a 32.0% market share in GWP, followed by Bupa Arabia with 19.7%.

“Saudi Enaya Cooperative Insurance Co. (Enaya) has the highest retention ratio of 100% in Q4-20, Bupa at 99.0% had the second-highest retention ratio,” according to the report.

The sector’s gross claims paid (GCP) reached SAR 7.1 billion in Q4-20, increasing by 4.8% YoY.

Net claims incurred (NCI), meanwhile, declined by 1.7% YoY to SAR 6.3 billion.