Four Tadawul-listed insurance firms led by Bupa Arabia and Tawuniya dominated 59 percent of the insurance market’s operations during the first nine months of 2016, Albilad Capital said in a report on Wednesday.
Bupa’s market share grew the most by 2 percent year-on-year (YoY) to 24.5 percent of total market.
It was followed by The Company for Cooperative Insurance (Tawuniya) with 18.1 percent; The Mediterranean and Gulf Insurance and Reinsurance Co. (Medgulf) with 9.4 percent; and Malath Cooperative Insurance and Reinsurance Co. with 7.0 percent.
In terms of market share growth, Al-Rajhi Company for Cooperative Insurance came second with 1.7 percent YoY. Meanwhile, Medgulf reported the biggest decline in market share of 2.9 percent.
The investment arm of Bank Albilad said that there remains weak competition between insurance firms.
“The Saudi insurance market decelerated for the first time in 5 years recording 4.5% YoY growth in H1 2016,” the report said. “The deceleration is attributable to two main factors: shrinking health insurance market share by 96 bps and declining general insurance segment by 12% YoY despite the 20%-growth of vehicle insurance segment.”
Lower oil prices have also cast a shadow on the kingdom’s macroeconomic conditions, leading to slower growth and subdued demand for insurance products.
A decline in employment rates has also impacted the sector for the first time since 2005, the brokerage firm added.
|
Saudi Insurance Firms & Market Share |
|||
|
Company |
9M 2015 |
9M 2016 |
Variation |
|
Bupa Arabia |
22.5% |
24.5% |
+2.0% |
|
Tawuniya |
17.3% |
18.1% |
+0.8% |
|
Medgulf Insurance |
12.4% |
9.4% |
(2.9%) |
|
Malath Insurance |
5.5% |
7.0% |
+1.6% |
|
Al Rajhi Takaful |
3.6% |
5.3% |
+1.7% |
|
AXA Insurance |
3.6% |
3.7% |
+0.1% |
|
Trade Union |
2.5% |
2.9% |
+0.4% |
|
Wala Insurance |
2.3% |
2.7% |
+0.4% |
|
SAICO |
2.8% |
2.4% |
(0.4%) |
|
UCA |
3.3% |
2.4% |
(0.9%) |
|
Allianz SF |
2.2% |
2.2% |
-- |
|
Arabian Shield |
1.7% |
2.1% |
+0.5% |
|
Wafa Insurance |
1.3% |
1.6% |
+0.3% |
|
Wataniya |
1.6% |
1.6% |
-- |
|
ACIG |
1.6% |
1.5% |
(0.1%) |
|
Salama Insurance |
1.1% |
1.5% |
+0.4% |
|
Buruj Insurance |
1.2% |
1.2% |
-- |
|
Arabia Insurance |
2.0% |
1.2% |
(0.8%) |
|
Alahli Takaful |
1.1% |
1.1% |
-- |
|
Alinma Tokio Marine |
0.6% |
1.0% |
+0.4% |
|
Al-Alamiya |
1.1% |
0.8% |
(0.3%) |
|
Gulf General |
1.1% |
0.8% |
(0.3%) |
|
Solidarity Takaful |
0.9% |
0.7% |
(0.2%) |
|
Gulf Union |
0.6% |
0.6% |
-- |
|
ACE Arabia Insurance (Chubb) |
0.8% |
0.6% |
(0.2%) |
|
Metlife insurance |
0.4% |
0.5% |
+0.1% |
|
Alahlia Insurance |
0.8% |
0.5% |
(0.3%) |
|
SABB Takaful |
0.5% |
0.5% |
-- |
|
Amana Insurance |
1.2% |
0.5% |
(0.7%) |
|
Al Sagr Insurance |
2.2% |
0.5% |
(1.7%) |
|
Enaya |
0.2% |
0.3% |
+0.1% |
|
Aljazira Takaful |
0.2% |
0.2% |
-- |
|
Sanad Insurance |
0.0% |
0.0% |
-- |
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