Saudi Arabia:Al Rajhi Takaful maintains stable net profits in 2024

Al Rajhi Cooperative Insurance Company (Al Rajhi Takaful), the third largest insurer in Saudi Arabia in terms of premium volume, has reported a net profit after zakat attributable to the shareholders of SAR332.34m ($88.58m) in 2024, 1.30%, higher than the SAR328.06m chalked up in 2023.

According to a statement by the company, the profit increase was due to the following main reasons:

• Insurance service results before retakaful amounted to SAR728.12m in 2024 compared to SAR696.50m in 2023, an increase of 4.54%, which was principally driven by the business growth.

• Net insurance results for 2024 amounted to SAR221.99m compared to SAR318.75m during the previous year, a decrease of 30.36%, which was mainly due to an increase in claims and retakaful contributions partly offset by the retakaful claim recoveries.

• The net insurance finance expenses of SAR384.69m includes return on unit holders’ fund investments along with fair value movements payable to the unit holders.

• Total investment income in 2024 of SAR605.06m (2023: SAR268.86m) includes SAR352.71m (2023: SAR114.01m) pertaining to fair value movement in unit holders' fund investments. Net investment income (excluding unit holders’ share) in 2024 amounted to SAR252.35m compared to SAR154.85m during the previous year, an increase of 62.96%, driven by improved yield and an increase in investible assets.

• The other operating expenses for the current year amounted to SAR126.15m compared to SAR103.98m in 2023, an increase of 21.33%, arising from an increase in operating expenses to support business growth.

Moreover, gross written premiums amounted to SAR10,909.09m in 2024 compared to SAR6,022.86m during the previous year, an increase of 81.13%.

Al Rajhi Takaful – 2024 financial results