Saudi Arabia: Peer review of four insurers shows strong capitalisation but mixed company profile scores

Source: Middle East Insurance Review | Sep 2024

The Company for Cooperative Insurance (Tawuniya) is well diversified across insurance lines with a solid competitive profile, says Fitch Ratings.

Tawuniya is one of the largest insurers in Saudi Arabia with a notably dominant gross premium-based market share.

Fitch adds that Tawuniya’s competitive profile is helped by the 26% state ownership held by the General Organisation for Social Insurance, a government-owned entity.

Fitch made these comments in a peer review of Saudi Arabian insurers. Apart from Tawuniya, the other three companies are Gulf Union Alahlia Cooperative Insurance Company, Wataniya Insurance Company and Arabian Shield Cooperative Insurance Company (ASC).

Wataniya recorded considerable organic growth in 2023 supported by strong volumes in motor insurance and strong increases in rates. Similarly, Gulf Union reported strong premium growth in 2023 driven by the medical retail and small- to-medium-sized motor segments.

Fitch regards ASC’s strong capitalisation as one of its main credit strengths. It has considerably increased its paid-up share capital through recent mergers. M

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