Saudi insurance sector Q2 results: premiums up, net income down

DUBAI: Saudi Arabian insurance sector showed overall positive developments during Q2 as gross written premiums (GWPs) grew by 8.1 percent to reach 9.4 billion compared to 8.7 billion SAR in the corresponding period last year, Saudi Central Bank SAMA said.
GWP is used to measure an insurance’s company’s revenue health.
The net income, however, decreased by 59 percent, driven by an 89.6 percent decrease in Operational Income due to the claims returning back to the pre-pandemic normal levels.
SAMA’s Q2 report for the insurance sector said the majority of insurance classes witnessing a growth in premiums.
Among property and casualty classes, energy and property classes accounted for the biggest claimants by premium volume during Q2 of the year 2021, growing by 98 percent and 8 percent respectively over Q2 of the year 2020.
Protection and saving insurance classes also grew by 34 percent reaching 436 Million SAR in Q2 of the year 2021. The Solvency ratio improved to reach 172.2 percent.
Premiums of health insurance rose by 6.6 percent to SR5.1 billion, and the motor insurance sector fell by 9.9 percent to SR1.7 billion year on year.
Both insurance types retained a substantial portion of their business, SAMA report said, with retention ratio reaching 97.6 percent and 94.5 percent, respectively.