Saudi United Cooperative Insurance Company (WALA’A)

Established on October 9th, 2006 under the name of Saudi United Cooperative Insurance Company, Wala'a is a relatively new company in the Saudi market.

Owned at 60% by local businessmen, and with the remaining 40% being placed on the stock exchange, the company chosen Wala'a as its trade name which means loyalty in Arabic.

In 2015, that is nearly 9 years after its starting, Wala'a is still considered as a medium-sized company in the Saudi market dominated by giant Tawuniya, followed by Medgulf, Bupa and UCA. The turnover of the company is driven by motor insurance which in 2014 accounted for 37% of all underwritings.

Damage to property and Engineering classes of business, on their part, respectively account for 28.7% and 17.8% of turnover.

Like all other players on the market, Wala'a has gone through difficult periods, alternating losses and profits. The combined ratio is around and sometimes exceeds 100% over the past five years.

Thanks to its enormous potential, Saudi Arabia remains a promising market despite results that are not up to the expectations of local insurers.

Sulaiman Al-Kadi	Johnson Varughese
Chairman of the board	Chief Executive Officer

Main technical highlights: 2010-2014

Figures in USD

	2010	2011	2012	2013	2014
Gross written premiums	58 673 341	74 289 278	62 498 082	92 581 927	173 141 365
Written premiums(1)	40 571 471	41 019 724	42 349 370	51 570 041	89 296 626
Net earned premiums	31 633 797	43 852 260	47 485 495	40 621 285	68 546 513
Net incurred losses	20 375 948	27 009 134	27 057 411	25 979 577	55 495 727
Management expense(2)	14 768 710	16 771 317	16 336 058	17 411 026	22 606 954
Net loss ratio	64.4%	61.6%	57%	64%	81%
Net expenses ratio(3)	36.4%	40.9%	38.6%	33.7%	25.3%
Net combined ratio	100.8%	102.5%	95.6%	97.7%	106.3%
Net technical result	-1 674 646	1 603 691	4 057 801	69 934	-9 572 552
Loss / net profit	-1 085 346	1 162 086	5 513 566	8 436 948	-10 231 686

⁽¹⁾net of reinsurance
⁽²⁾including acquisition costs
⁽³⁾net expenses ratio = management expenses / written premiums net of reinsurance

Evolution of premiums, losses and results: 2010-2014

in thousands USD

Evolution of ratios: 2010-2014

Breakdown of turnover per class of business: 2010-2014

in USD

	2010	2011	2012	2013	2014	2014 shares
Health	9 732 751	26 279 953	17 275 016	11 868 760	12 594 824	7.3%
Motor	30 355 364	16 912 154	15 905 152	28 487 510	64 096 631	37%
Property damage	5 756 373	7 587 898	14 546 424	32 585 020	49 691 885	28.7%
Engineering	-	-	-	-	30 766 670	17.8%
Others	12 828 853	23 509 273	14 771 490	19 640 637	15 991 355	9.2%
Total	58 673 341	74 289 278	62 498 082	92 581 927	173 141 365	100%

Breakdown of turnover per class of business in 2014

Net earned premiums: 2010-2014

in USD

	2010	2011	2012	2013	2014
Health	4 614 659	7 724 657	20 961 414	11 367 863	12 903 596
Motor	21 792 903	26 385 405	16 239 784	18 751 637	43 703 308
Property damage	459 913	757 146	687 679	1 020 891	1 815 651
Engineering	-	-	-	851 987	1 208 849
Others	4 766 322	8 985 052	9 596 618	8 628 907	8 915 109
Total	31 633 797	43 852 260	47 485 495	40 621 285	68 546 513

Net incurred losses: 2010-2014

in USD

	2010	2011	2012	2013	2014	2014 shares
Health	3 065 140	3 187 022	7 133 011	4 943 822	6 740 877	12.1%
Motor	15 589 151	20 511 787	15 614 117	16 859 868	42 378 327	76.4%
Property damage	227 886	370 320	398 787	1 959 276	1 275 050	2.3%
Engineering	-	-	-	2 183	1 452 517	2.6%
Others	1 493 771	2 940 005	3 911 496	2 214 428	3 648 956	6.6%
Total	20 375 948	27 009 134	27 057 411	25 979 577	55 495 727	100%

Non life net loss ratios: 2010-2014

	2010	2011	2012	2013	2014
Health	66.4%	41.3%	34%	43.5%	52.2%
Motor	71.5%	77.7%	96.1%	89.9%	97%
Property damage	49.5%	48.9%	58%	191.9%	70.2%
Engineering	-	-	-	0.3%	120.2%
Others	31.3%	32.7%	40.8%	25.7%	40.9%
Total	64.4%	61.6%	57%	64%	81%

Sources: Balance sheets of «SAUDI UNITED COOPERATIVE INSURANCE COMPANY (WALA’A)»

Exchange rates as at 31/12	2010	2011	2012	2013	2014
	0.26670	0.26669	0.26698	0.26666	0.26653