Sharp fall of the Saudi insurance market’s profits

The cumulated profits of the Saudi insurance companies decreased by 59% in 2017, going from 2.5 billion SAR (666.85 million USD) in 2016 to 1 billion SAR (266.8 million USD) by the end of the past year.

This abrupt fall of the profits has been accounted for by the huge losses sustained by the three major local insurers: MedGulf (-388 million SAR, -103.52 million USD), Tawuniya (-146.5 million SAR, -39.1 million USD) and MetLife AIG ANB (-57.8 million SAR, -15.4 million USD).

In total, out of the 32 Saudi insurers, eight have ended the year 2017 in the red zone versus five in 2016. With underwritings worth 35.4 billion SAR (9.44 billion USD) in 2017, the saudi insurance market turnover remains almost stable in comparison with the previous year when it amounted to 35.8 billion SAR (9.55 billion USD).

These figures do not include Saudi Re’s results of 2017 when it generated rising profits by 110% at 39 million SAR (10.4 million USD) and a turnover of 942 million SAR (251.3 million USD).