Logo of Arabian Shield Cooperative Insurance
Arabian Shield Cooperative Insurance Co.’s Q4 2020 earnings growth was driven by improved technical indicators of insurance products and higher earned premiums of motor insurance policies, chief executive officer Bassel Al-Abdulkarim told Argaam.
The health insurance segment accounted for 60% of gross written premiums (GWPs) or SAR 75.24 million in Q4 2020. It was followed by motor insurance SAR 42.86 million (34%), property insurance SAR 4.57 million (4%) and protection and savings SAR 2.88 million (2%).
“The strong performance indicators of the insurance industry are boosting the growth of the Saudi market, despite the negative implications of the pandemic and the precautionary lockdown measures, which we believe their impact was not fully reflected,” Al-Abdulkarim added.
“The Saudi insurance market suffers from fierce competition and high concentration, implying pressures on small and medium-sized insurers to maintain their market share. This may weigh on the whole insurance industry.”
The health insurance portfolio will be the most vulnerable to the market variables, as some insurers may expand their portfolio to include other products to survive the global market competition, the CEO said.
The company is bracing for new growth opportunities in the insurance of mega projects, tourism and protection, as well as saving, in line with Saudi Vision 2030, Al-Abdulkarim noted.
“As for 2021, we will maintain our conservative policy as regards having a balanced and diversified portfolio, in addition to expanding our foothold in all business divisions to maintain market share and sustain profitability,” he indicated.
“We are always ready to consider potential mergers, acquisitions or strategic partnerships that will add value to our shareholders.”
Arabian Shield reported a net profit before Zakat of SAR 43.6 million for 2020, compared to SAR 17 million a year earlier, and posted SAR 10.2 million in earnings for Q4 2020, data compiled by Argaam showed.
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