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 15 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 boardChief Executive Officer

WALA'A in 2014

Share capital
53 306 000 USD
Turnover
173 141 365 USD
assets
237 222 361 USD
Shareholders’ equity
44 880 465 USD
Net loss
10 231 686 USD
Net loss ratio
81%
Net expenses ratio
25.3%
Net combined ratio
106.3%
Regional offices
3
Employees
62

Board of directors and management

Chairman of the board
Sulaiman Al-Kadi
Chief Executive Officer
Johnson Varughese
Chief financial officer (CFO)
Phanindra Kumar Krishnaswamy
Vice President, Technical
Wasif F. Minhas
Vice President, Sales and Marketing
Salah Mohammed Al Jaber
Human Resources and Adminstration Manager
Turki Al-Buraik
IT Manager
G. Sridhar
Underwriting Manager
Mannan Mehboob

Main shareholders

Saudi Stock Exchange
40%
Global General Insurance Co.
10.5%
Yousuf S. A. Al Rajhi
5.1%

Main technical highlights: 2010-2014

Figures in USD

 20102011201220132014
Gross written premiums
58 673 34174 289 27862 498 08292 581 927173 141 365
Written premiums(1)
40 571 47141 019 72442 349 37051 570 04189 296 626
Net earned premiums
31 633 79743 852 26047 485 49540 621 28568 546 513
Net incurred losses
20 375 94827 009 13427 057 41125 979 57755 495 727
Management expense(2)
14 768 71016 771 31716 336 05817 411 02622 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 6461 603 6914 057 80169 934-9 572 552
Loss / net profit
-1 085 3461 162 0865 513 5668 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

 201020112012201320142014
shares
Health
9 732 75126 279 95317 275 01611 868 76012 594 8247.3%
Motor
30 355 36416 912 15415 905 15228 487 51064 096 63137%
Property damage
5 756 3737 587 89814 546 42432 585 02049 691 88528.7%
Engineering
----30 766 67017.8%
Others
12 828 85323 509 27314 771 49019 640 63715 991 3559.2%
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

 20102011201220132014
Health
4 614 6597 724 65720 961 41411 367 86312 903 596
Motor
21 792 90326 385 40516 239 78418 751 63743 703 308
Property damage
459 913757 146687 6791 020 8911 815 651
Engineering
---851 9871 208 849
Others
4 766 3228 985 0529 596 6188 628 9078 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

 201020112012201320142014
shares
Health
3 065 1403 187 0227 133 0114 943 8226 740 87712.1%
Motor
15 589 15120 511 78715 614 11716 859 86842 378 32776.4%
Property damage
227 886370 320398 7871 959 2761 275 0502.3%
Engineering
---2 1831 452 5172.6%
Others
1 493 7712 940 0053 911 4962 214 4283 648 9566.6%
Total
20 375 94827 009 13427 057 41125 979 57755 495 727100%

Non life net loss ratios: 2010-2014

 20102011201220132014
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

Contact

Head office
Khobar King Abdullah Road, Buidling Rabiah & Nasser, Dhahran Street, BP 31616, Al-Khobar 31952, Saudi Arabia
Phone
+966 38 652 200
Fax
+966 38 652 255
E-mail
walaa [at] walaa [dot] com (walaa [at] walaa [dot] com )
Website
0
Your rating: None
Advertising Program          Terms of Service          Copyright          Useful links          Social networks          Credits