Insurance Sector Witnessed Positive Developments, during Q2, 2021, SAMA Announce

The Saudi Central Bank (SAMA) has released the insurance sector’s second quarterly report for 2021, that accentuates and compares the insurance sector performance, during the second quarter of 2021 to the same quarter, in the previous year.

SAMA report also compared the performance, during the first half of 2021, to the same period, in the preceding year.

The release of the report is part of the central bank essential commitment to providing accurate and up-to-date information, on the performance of Saudi Arabia’s insurance sector.

According to the report, the insurance sector showed positive developments, during the second quarter of 2021.

The gross subscribed premiums grew by 8.1% to reach SR9.4 billion, in the second quarter of 2021, compared to SR8.7 billion in the corresponding period, last year.

The majority of insurance types thrived and saw an increase in subscribed premiums.

Energy and Property types were the biggest ones, in terms of the premium volume, during the second quarter of 2021, growing by 98% and 8%, respectively during the second quarter of 2021. Protection and saving insurance types also grew by 34% reaching SR436 Million, in the second quarter of 2021, compared to SR325 million during the second quarter of 2021.

The report indicated that during the second quarter of 2021, the insurance sector experienced a 59 per cent decrease, in the net income, as a result of an 89.6 per cent slump in insurance income.

This drop is due to the return of claims to Coronavirus pre-ban and closure levels.

On the other hand, the insurance sector’s solvency ratio boosted to 172.2%.