Saudi insurance sector grew 2.3 percent in 2020 amid pandemic

Saudi insurance sector grew 2.3 percent in 2020 amid pandemic
SAMA released its 14th annual report on the Saudi insurance market. (Supplied)
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Updated 07 May 2021

Saudi insurance sector grew 2.3 percent in 2020 amid pandemic

Saudi insurance sector grew 2.3 percent in 2020 amid pandemic
  • Written premiums rose to SR38.78 billion
  • Net profit increased 61.1 percent

RIYADH: The Saudi insurance sector grew 2.3 percent in terms of written premiums in 2020, to SR38.78 billion ($10.3 billion), according to the Saudi Arabian Monetary Authority’s (SAMA) 14th annual report on the Saudi insurance market, issued on Thursday.

Energy and accident & liability insurance classes showed notable increases in written premiums with penetration of the sector increasing from 1.3 percent in 2019 to 1.5 percent in 2020.

In terms of underwriting performance, the overall loss ratio improved to 77.5 percent.

Insurance net profit (after zakat and tax) increased by 61.1 percent compared to the previous year’s corresponding figure, thereby improving the return-on-assets and return-on-equity ratios.

The SAMA report also noted that the overall Saudization ratio increased from 74 percent in 2019 to 75 percent in 2020.