Saudi Insurance Sector- Quarterly AWS
Insurance Sector Report
November 2017
Sector report | KSA | Q3-2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q3-2017
November 2017
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
Company Name
Codes
The Company for Cooperative Insurance
Tawuniya
Salama Cooperative Insurance Co.
Salama
UCA Cooperative Assurance Co.
UCA
Al-Rajhi Company for Cooperative Insurance
Al Rajihi Takaful
Al Alamiya for Cooperative Insurance Co.
Al Alamiya
Allied Cooperative Insurance Group
ACIG
Bupa Arabia for Cooperative Insurance Co.
Bupa Arabia
Arabian Shield Cooperative Insurance Co.
Arabian Shield
Buruj Cooperative Insurance Co.
Buruj
Al Sagr Cooperative Insurance Co.
Sagr Insurance
Malath Cooperative Insurance Co.
Malath Insurance
Solidarity Saudi Takaful Co.
Solidarity
Trade Union Cooperative Insurance Co.
Trade Union
Sanad Cooperative Insurance Company
Sanad
Walaa Cooperative Insurance Co.
Walaa
Allianz Saudi Fransi Cooperative Insurance Co.
Allianz SF
Al-Ahlia Insurance Co.
Al Ahlia
The Mediterranean and Gulf Insurance and Reinsurance Co.
MEDGULF
Saudi Indian Company for Cooperative Insurance
Wafa Insurance
SABB Takaful Co.
SABB Takaful
Saudi Arabian Cooperative Insurance Company
SAICO
Gulf Union Cooperative Insurance Co.
Gulf Union
Saudi Re for Cooperative Reinsurance Co.
Saudi Re
Arabia Insurance Cooperative Company
AICC
ALAHLI TAKAFUL COMPANY
ATC
AXA Cooperative Insurance Co.
AXA-Cooperative
Weqaya Takaful insurance and reinsurance Company
Weqaya Takaful
CHUBB Arabia Cooperative Insurance Co.
Chubb Arabia
Gulf General Cooperative Insurance Co.
Gulf General
Wataniya Insurance Co.
Wataniya
Amana Cooperative Insurance Co.
Amana Insurance
Saudi Enaya Cooperative Insurance Co.
Enaya
Alinma Tokio Marine Co.
Alinma Tokio
MetLife AIG ANB Cooperative Insurance Co.
MetLife
Aljazira Takaful Taawuni Co.
Jazira Takaful
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Gross Written Premium 30.2%
12000 10000
NWP (Net Written Premiums) in Q3-2017 stood at SAR 6.9bn, depicting a fall of 2.6%YoY.
8000
NPE (Net Premium Earned) in Q3-2017 at SAR 7.7bn showed a jump of 2.3%YoY.
4000
6000
20.4% 14.5%
26.7%
18.3% 19.3%
22.6% 22.7% 21.5%
12.2%
8.0%
GWP - LHS
NPE-Sector Wise
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q3 - 2017
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
-2.4%
Q4 - 2016
Q1 - 2017
-4.4%
2.3%
Q3 - 2017
2.2%
Q2 - 2017
6.8%
Q3 - 2016
19.9%
Q2 - 2016
Q1 - 2016
Q2 - 2015
Q4 - 2015
24.8% 27.2% 26.1% 23.8%
Q3 - 2015
25.1%
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
16.9%
32.1%
20.9%
Q2 - 2014
17.8%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
% Growth (YoY) - RHS
-6.0% -8.0%
Arabian Shield
-2.1%
AICC
Trade Union
Malath
0.6%
Bupa Arabia
-2.0%
0.8%
UCA
0.0%
-4.0%
Others
2.07%
MetLife AIG Alarabi
MEDGULF
2.66%
Tawuniya
Gulf General
Alinma Tokio M
Amana Insurance
UCA
ATC
Malath Insurance
Salama
Al Rajihi Takaful
Bupa Arabia
Enaya
Basis Points
1
3.7%
2.0%
AXA-Cooperative
20.4%
27.3%
6.0% 4.0%
17.2% 9.0%
Retention Ratio - RHS
Top 5 Gainers and Losers- GWP market Share Tawuniya
30.5%
Al Rajihi Takaful
6.2%
17.5%
24.4%
23.9%
NPE
Gross Written Premium- Market Share Bupa Arabia
13.4%
Q1 - 2013
Others
26.9%
Saudi Re
Others
Accident and Liability
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -
Q4 - 2012
Protection and Saving 60%
4.5%
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
0
Q4 - 2012
2,000
Q3 - 2012
34%
32.6%
Q1 - 2016
4,000
Q2 - 2012
Health
Motor
Top 5 and Bottom 5- Retention Ratio
Q4 - 2015
6,000
Al Rajihi Takaful
2% 2%
Energy
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Q3 - 2015
8,000
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
Net Premium Earned
Motor
55%
-2.1%
% Growth (YoY) - RHS
Premium Ceded - LHS
27%
-9.5%
10,000
Q3 - 2012
Retention Ratio: Industry retention ratio stood at 83% in Q3-2017, as compared to 85.8% in Q3-2016. Enaya has the highest retention ratio of 101% in Q3-2017 BUPA Arabia at 98.8% had the second highest retention ratio.
Property/ Fire
15.5%
32.0% 28.0% 24.0% -2.6% 0.74% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% -12.0%
12,000
Q2 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 5.3% in Q3-2016 to 7.7% in Q32017 an improvement of 240bps , followed by Saudi Re which showed an improvement of 266bps. Tawuniya improved its market share from 15.1% in Q3-2017 to 17.2% in Q3-2017.
4% 4%
-2.2% 2.0%
Premium Ceded-Industry
BUPA with 30.5% market share in GWP was the biggest player.
Health
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
0
Market Share
10%
16.7%
2000
Health Sector Accounted for 55% of the total GWP, followed by Motor which accounted for 27% of GWP
GWP-Sector WIse
11.9%
24.2% 24.6%
Q3 - 2017
GWP (Gross Written Premiums) in Q3-2017 stood at SAR 8.3bn depicting a jump of 0.7% YoY.
-0.9%
-0.6%
-0.5%
-5.7%
Source: Argaam, SAMA
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Gross Claims Paid 6,000
24% 22%
Claims Market Share-sector wise Others
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q1 - 2013
Q4 - 2012
40% 30%
19%
17%
7%
-2%
3.4%
0.2%
20% 10% 0%
Q3 - 2017
-10%
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
-13.2%
Q3 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-20%
Q3 - 2017
Jazira Takaful
SABB Takaful
Amana Insurance
ATC
Al Alamiya
Al Ahlia
Solidarity
Sagr Insurance
Alinma Tokio M
Enaya
Chubb Arabia
Gulf General
AICC
Gulf Union
Saudi Re
MetLife AIG Alarabi
Buruj
ACIG
UCA
Arabian Shield
Wataniya
Wafa Insurance
Amana Insurance
ATC
Jazira Takaful
Q3 - 2017
Walaa Insurance
Buruj
Al Alamiya
Salama
Arabian Shield
Bupa Arabia
Chubb Arabia
Sagr Insurance
Al Rajihi Takaful
MEDGULF
Tawuniya
Al Ahlia
Trade Union
Malath Insurance
AICC
SAICO
Enaya
AXA
Allianz SF
Gulf General
SABB Takaful
ACIG
Saudi Re
Gulf Union
Wataniya
Wafa Insurance
MetLife AIG Alarabi
Jazira Takaful
ATC
SABB Takaful
zira Takaful
UCA
BB Takaful
Amana Insurance
Solidarity
Al Alamiya a Insurance
Chubb Arabia
Gulf General
Buruj ubb Arabia
Wataniya
Gulf Union ulf General
AICC
Enaya
Sagr Insurance
gr Insurance
Walaa
Arabian Shield
bian Shield
Alinma Tokio M
a Tokio M
a Insurance
SAICO
Saudi Re
Al Ahlia
Trade Union
ACIG
Salama
Allianz SF
Wafa Insurance
fa Insurance
Tawuniya
Bupa Arabia
AXA ooperative
upa Arabia
jihi Takaful
Al Rajihi Takaful
20.0%
Alinma Tokio M
40.0%
UCA
60.0%
Q3 - 2016
Solidarity
180% 160% 140% 120% 100% 80% 60% 40% 20% 0%
Q3 - 2017
80.0%
MetLife
21%
Combined Ratio Q3 - 2016
MEDGULF
Walaa Insurance
Others
SAICO
Engineering
Others
100.0%
AIG Alarabi
17%
23%
29%
Q3 - 2016
Salama
64%
Loss Ratio
th Insurance Malath Insurance
24%
1800 1600 1400 1200 1000 800 600 400 200 0
Trade Union
Protection and Saving
AXA
-
Allianz SF
Al Rajihi Takaful
120.0%
0.0%
17%
1,000
Malath Insurance
10%
50%
40%
-7%
AXA
25%
38%
25%
Al Rajihi Takaful
Malath
29%
3,000
MEDGULF
3%
24%
24%
Bupa Arabia
MEDGULF
8%
Motor
32%
3%
4,000
32%
60%
Claims Paid-Company wise
Health
Tawuniya
25%
5,000
70%
% Growth (YoY) - RHS
Net Claims Paid - LHS
IN MN SAR
Bupa Arabia
66%
6,000
Tawuniya
2% 2%
-7%
Net Claims Paid 7,000
2,000
UCA had the highest combined ratio of 153%, whereas Amana insurance had the lowest combined ratio of 23.4%. Claims Market Share-Company wise
Q3 - 2012
-
35% 30% 25% 20% 15% 7% 10% 5% 0% -5% -10%
7% -3% -1%
Q2 - 2015
Aljazira Takaful had the lowest loss ratio of 10.3%.
9%
1,500
Q1 - 2015
Malath insurance had the highest loss ratio of 99.0% in Q3-2017,followed by MedGulf at 88.1% in Q3-2017.
13%
9%
3,000
Aljazira Takaful paid the lowest claims of SAR 2.02mn. Health sector accounted for the highest share in claims at 64% , followed by Motor sector at 32%.
24%
17%
% Growth (YoY) - RHS
28%
18%
Q2 - 2012
BUPA Arabia with 25.3% market share in GCP paid the highest claims of SAR 1.33bn, followed by Tawuniya at 24.9% market share in claims.
25%
27% 19%
4,500 9%
Gross Claims Paid - LHS
23%
24%
Q4 - 2013
Market Share
31%
25%
Q3 - 2013
NCP (Net Claim Paid) in Q3-2017 stood at SAR 5.7bn, depicting a rise of 3.4%YoY.
30%
Q3 - 2017
7,500
Q2 - 2013
GCP (Gross Claims Paid) in Q3-2017 stood at SAR 6.1bn depicting a jump of 7.0% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Net Income 1,100
432
803
620
319
197.9
664.1
Q3 - 2017
285
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Wafa Insurance
Wafa Insurance
Alinma Tokio M
Gulf General
Walaa
MetLife AIG Alarabi
Alinma Tokio M
UCA
UCA Malath
Saudi Re
Enaya
SABB Takaful
Gulf Union Al Ahlia
AICC
ACIG
Gulf General
Al Alamiya
Chubb Arabia
Sagr Insurance
Wataniya
AXA
Allianz SF
Malath Insurance
SAICO
Amana Insurance
Trade Union
Solidarity
Arabian Shield
Salama
Buruj
Walaa Insurance
Al Rajihi Takaful
Tawuniya
Enaya
SABB Takaful
Al Ahlia
Gulf Union
AICC
ACIG
Gulf General
Jazira Takaful
Allianz SF
Sagr Insurance
Trade Union Al Ahlia
Al Alamiya
SAICO
Solidarity
Salama
Buruj
Arabian Shield
MEDGULF
Tawuniya
Alinma Tokio M
50 45 40 35 30 25 20 15 10 5 0
Wafa Insurance
Sagr Insurance
Gulf Union
Chubb Arabia
AICC
Arabian Shield
Enaya
ACIG
Salama
Wataniya
UCA
SAICO
Buruj
MetLife AIG
SABB Takaful
Amana
Jazira Takaful
Trade Union
AXA
MEDGULF
Saudi Re
Tawuniya
In Mn SAR
MEDGULF
Enaya
MetLife AIG
Alinma Tokio M
Malath Insurance Salama
Walaa Insurance
Solidarity
MEDGULF
MetLife AIG
Enaya
Walaa Insurance
Saudi Re
Al Rajihi Takaful
ATC
Bupa Arabia
Sagr Arabian Gulf Shield General
Bupa Arabia
-15.0%
Buruj
Salama
0.0%
-10.0%
122
Investment Income
5.0%
-5.0%
0
Al Rajihi Takaful
-80%
Chubb Arabia
10.0%
Arabian Shield
-60%
Walaa Insurance
-40%
Arabian Shield
-20%
Al Rajihi Takaful
Buruj
0%
Malath
20%
491
50 -50
ROA-Top 5/ Bottom 5 Alinma Tokio M
ROE-Top 5 /Bottom 5
Wataniya
5.0%
Chubb Arabia
0.5%
Jazira Takaful
10.0%
ATC
1.0%
ATC
15.0%
ATC
1.5%
AXA Cooperative
100
20.0%
Al Alamiya
2.0%
Malath Insurance
150
25.0%
Amana Insurance
2.5%
Solidarity
200
30.0%
Allianz SF
3.0%
40%
Q4 - 2012
Q3 - 2012
250
35.0%
Jazira Solidarity Amana Buruj Takaful
240
Surplus From Insurance Operations
In Mn SAR
Net Margins-Highest 10 40.0%
MEDGULF
0
-100
0.0%
(31)
50
Operating Margins-Highest 10
Wataniya Sagr
233
100
4.0%
ATC
405
150
-50
Buruj also posted the highest ROA of 11.0%.
Chubb Arabian Arabia Shield
199
200
Bupa Arabia
Buruj posted the highest ROE of 35.8%
Walaa
(1,159) (41)
3
Net Income-Company wise
In Mn SAR
Solidarity showed the highest Operating margins at 3.8%, whereas Jazira takaful showed the highest net margin at 35.7%, respectively.
Buruj
(117)
(900) (1,300)
AlRajhi takaful showed the highest investment income of SAR 47.8mn in the sector, registering growth of 62.7%YoY and 9.9%QoQ.
Solidarity Jazira Amana Takaful
(49)
179
(500)
BUPA showed the highest surplus, from its insurance operations , at SAR 229.4mn, depicting a fall of 21.0%YoY and a QoQ jump of 57.8%.
0.0%
340
Q2 - 2017
300 (100)
BUPA with net income of SAR 198.2mn, showed a fall of 18.3%YoY.
3.5%
17.3% YoY235.5% QoQ
700 In MN SAR
Net income for the sector stood at SAR 664.1mn in Q3-2017, as compared to SAR 802.1mn in Q3-2016, depicting a fall of 17.2%. On a QoQ basis net income showed a 235.5% increase. Net income before Zakat stood at SAR 756.7mn, depicting a fall of 15.4%, whereas a 144.2% jump on QoQ basis
Source: Argaam
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
United Cooperative Assurance had the lowest PE of 8.3x, followed by Buruj with a PE of 8.5x. Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.8x, followed by Sagr insurance with a PB of 1.4x Only 5 companies gave out dividends, SAGR insurance had the highest dividend yield of 9.1% followed by Arabian Sheild with a dividend yield of 4.8%
Lowest PE 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Tawuniya-1 Yr Performance 5,500.00
7,700.00
105
7,500.00
5,300.00
7,500.00
100
7,300.00
5,100.00
7,300.00
7,100.00
4,900.00
7,100.00
6,900.00
4,700.00
6,900.00
6,700.00
4,500.00
6,700.00
4,300.00
6,500.00 Dec 2016
6,500.00 Dec 2016
Mar 2017
Jun 2017
Sep 2017
95 90 85 Mar 2017
Insurance Sector (RHS)
TASI (LHS)
Jun 2017
Insurance Sector (LHS)
BUPA-1 Yr Performance
Sep 2017
80
140
7,700.00
65
7,500.00
130
7,500.00
60
7,100.00 110
6,900.00
6,700.00
90
6,500.00 Dec 2016
Insurance Sector (LHS)
Sep 2017
80
7,700.00
7,500.00
70
7,500.00
60
7,300.00
50
7,100.00 6,900.00 6,700.00 Jun 2017
Insurance Sector (LHS)
35 Mar 2017
Jun 2017
Sep 2017
30
Alrajhi takaful (RHS)
Walaa-1 Yr Performance
7,700.00
Mar 2017
40
Insurance Sector (LHS)
Bupa (RHS)
Medgulf-1 Yr Performance
6,500.00 Dec 2016
45
6,900.00
6,500.00 Dec 2016
Jun 2017
50
7,100.00
6,700.00 Mar 2017
55
7,300.00
100
Sep 2017
Medgulf (RHS)
7,100.00
30
6,900.00
20
6,700.00
10
30 25 20
6,500.00 Dec 2016
Mar 2017
Solidarity
Sagr Insurance
SAICO
UCA
SAICO
Trade Union
UCA
WALAA
Salama
Saudi Re
Saudi Re
Trade Union Gulf General
Gulf Union
Al-Ahlia
AXA Cooperative
Solidarity
10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
9.1%
4.8%
Sagr Insurance
Arabian Shield
4.3%
Tawuniya
2.0%
1.7%
Jazira Takaful
Buruj
Top 5 Companies-Market Cap 35
7,300.00
40
Gulf Union
Highest Dividend Yield
7,700.00
120
2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0
Tawuniya (RHS)
Alrajhi Takaful-1 Yr Performance
7,300.00
Arabian Shield
Lowest PB
7,700.00
Jun 2017
Insurance Sector (LHS)
Sep 2017
WALAA (RHS)
15
12,000 10,000 In Mn SAR
Tadawul Insurance Index- 1 Yr Performance
Buruj
8,000 6,000 4,000 2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
WALAA
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
Q3-2016
Q2-2017
Q3-2017
Q3-2016
Q2-2017
Q3-2017
MetLife AIG Alarabi
36
88
103
185.4%
17.1%
26
63
89
241.7%
41.2%
42
55
69
66.1%
25.5%
Jazira Takaful
29
32
28
-5.9%
-13.2%
15
13
13
-10.2%
1.0%
7
9
7
-2.9%
-18.9%
Tawuniya
1,241
2,104
1,421
14.5%
-32.5%
1,077
1,764
1,161
7.7%
-34.2%
1,759
1,832
1,883
7.0%
2.8%
Malath Insurance
531
144
62
-88.3%
-56.8%
466
127
55
-88.2%
-56.6%
351
227
220
-37.3%
-3.2%
MEDGULF
511
869
513
0.4%
-40.9%
420
702
426
1.3%
-39.4%
714
586
565
-20.9%
-3.7%
Allianz SF
180
227
147
-18.0%
-35.2%
115
134
102
-11.0%
NM*
130
166
160
23.3%
NM*
Salama
132
202
159
20.4%
-21.3%
125
194
148
18.9%
-23.7%
113
168
181
60.3%
7.9%
Walaa Insurance
268
218
284
5.9%
30.7%
193
173
174
-9.6%
0.7%
161
200
196
21.7%
-2.2%
Arabian Shield
153
165
115
-24.5%
-30.2%
101
114
79
-22.0%
-30.6%
102
122
106
3.3%
-13.5%
SABB Takaful
49
45
51
2.8%
11.6%
36
34
39
6.9%
14.3%
32
34
33
3.0%
-4.3%
SAICO
160
149
157
-2.1%
5.5%
108
105
142
31.6%
36.0%
124
130
142
14.6%
9.1%
Wafa Insurance
93
119
100
7.1%
-16.1%
78
73
62
-20.8%
-15.5%
126
101
98
-22.4%
-3.3%
Gulf Union
46
79
32
-29.4%
-58.9%
26
52
17
-35.2%
-67.2%
23
56
54
130.2%
-4.1%
ATC
115
58
120
4.1%
106.1%
29
10
24
-17.8%
132.3%
21
21
16
-24.3%
-24.3%
Al Ahlia
43
46
53
23.0%
14.7%
38
43
48
25.0%
12.1%
43
37
37
-15.5%
-1.4%
ACIG
136
102
113
-17.4%
10.3%
115
88
98
-14.2%
12.0%
110
87
82
-24.9%
-5.6%
AICC
110
69
59
-46.5%
-14.5%
96
46
38
-60.8%
-19.0%
70
73
54
-23.8%
-26.4%
Trade Union
274
289
103
-62.5%
-64.4%
231
245
77
-66.8%
-68.7%
193
189
176
-9.0%
-6.9%
Solidarity
55
21
37
-33.3%
79.5%
48
18
30
-37.9%
70.7%
52
43
40
-23.7%
-8.0%
Wataniya
148
83
152
2.4%
83.6%
89
42
88
-1.5%
106.5%
65
74
73
11.9%
-1.7%
Amana Insurance
11
16
9
-18.4%
-44.6%
4
6
7
72.0%
16.0%
58
14
11
-81.6%
-24.1%
AXA-Cooperative
387
220
369
-4.6%
67.9%
346
195
334
-3.5%
71.4%
265
323
300
13.5%
-6.9%
Gulf General
37
46
26
-29.9%
-44.5%
17
23
11
-35.5%
-54.1%
34
29
23
-31.8%
-19.5%
Buruj
109
144
95
-12.8%
-34.4%
92
133
81
-12.3%
-39.3%
100
117
131
30.7%
11.6%
Al Alamiya
64
48
57
-11.0%
18.8%
27
26
21
-20.8%
-16.1%
50
46
39
-22.5%
-14.4%
Saudi Re
82
121
303
267.0%
150.2%
75
89
89
18.9%
0.9%
119
143
150
26.0%
5.0%
UCA
64
251
116
82.5%
-53.7%
25
61
39
51.3%
-36.7%
146
52
37
-75.0%
-30.0%
Bupa Arabia
2,579
1,848
2,523
-2.2%
36.5%
2,567
1,832
2,497
-2.7%
36.3%
1,939
1,909
1,937
-0.1%
1.4%
Sagr Insurance
13
93
61
380.0%
-34.6%
(9)
68
56
-744.3%
-18.0%
95
42
58
-39.1%
36.6%
Chubb Arabia
42
48
42
0.6%
-13.4%
17
28
14
-16.8%
-49.0%
29
27
26
-11.1%
-2.7%
Enaya
21
66
59
178.0%
-10.3%
13
65
60
365.4%
-8.6%
14
34
52
270.2%
55.5%
Al Rajhi Takaful
434
680
742
71.2%
9.2%
410
649
711
73.2%
9.6%
407
686
719
76.5%
4.8%
Alinma Tokio M
47
103
51
7.8%
-50.9%
17
25
27
58.8%
8.7%
33
32
35
4.0%
9.1%
8,201
8,794
8,261
0.7%
-6.1%
7,035
7,240
6,856
-2.5%
-5.3%
7,529
7,665
7,706
2.4%
0.5%
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 2 Gross Claims Paid Tawuniya Salama
YoY %Increase
Q3-2016
Q2-2017
Q3-2017
1,237
1,519
1,512
22.2%
62
112
113
81.6%
QoQ %Increase
Net Claims Paid
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
-0.5%
1,306
1,230
1,484
13.6%
20.6%
1.0%
80
83
128
60.0%
54.1% -84.6%
UCA
187
64
60
-67.9%
-5.6%
124
98
15
-87.8%
Al Rajhi Takaful
287
559
462
60.8%
-17.4%
303
329
592
95.1%
79.9%
Al Alamiya
28
23
18
-34.6%
-21.6%
25
25
12
-51.9%
-52.2% -28.0%
ACIG Bupa Arabia Arabian Shield
75
73
60
-19.6%
-17.6%
81
79
57
-29.7%
1,333
1,647
1,536
15.2%
-6.8%
1,511
1,399
1,475
-2.4%
5.5%
43
90
69
58.8%
-23.3%
66
66
61
-6.8%
-7.1%
Buruj
42
61
59
42.1%
-3.8%
56
65
78
39.1%
20.6%
Sagr Insurance
59
42
26
-56.2%
-39.0%
69
41
35
-48.8%
-14.6%
Malath Insurance
436
264
198
-54.6%
-25.0%
400
472
168
-58.1%
-64.5%
Solidarity
36
26
24
-33.6%
-7.2%
25
18
6
-77.3%
-69.0% -24.1%
Trade Union
142
143
141
-0.8%
-1.3%
176
153
116
-34.0%
Walaa Insurance
67
125
101
49.2%
-19.5%
79
83
100
25.9%
20.0%
Allianz SF
89
147
160
79.7%
8.9%
100
102
124
23.8%
22.1%
Al Ahlia
31
24
23
-27.3%
-5.5%
36
27
22
-38.9%
-18.9%
MEDGULF
666
633
632
-5.1%
-0.0%
657
539
459
-30.2%
-14.9%
Wafa Insurance
104
149
96
-7.8%
-35.4%
102
94
74
-27.6%
-21.5%
5
15
8
57.3%
-45.9%
4
5
3
-18.6%
-41.1%
SAICO
93
135
110
18.6%
-19.0%
80
76
95
19.3%
26.1%
Gulf Union
20
47
50
157.5%
7.9%
11
12
31
170.0%
154.0%
SABB Takaful
Saudi Re
48
82
57
19.8%
-30.3%
569
77
114
-79.9%
48.7%
AICC
73
63
47
-35.4%
-25.5%
56
37
27
-52.6%
-28.2% -107.1%
ATC
11
35
18
65.2%
-48.7%
4
5
(0)
-108.3%
AXA-Cooperative
206
211
203
-1.5%
-4.1%
219
217
238
8.4%
9.7%
Chubb Arabia
28
29
31
11.3%
7.3%
10
14
10
8.3%
-27.8% -38.0%
Gulf General
39
35
39
-1.6%
9.1%
20
16
10
-48.3%
Wataniya
75
57
80
6.7%
39.8%
46
42
49
7.1%
15.8%
Amana Insurance
48
22
12
-76.0%
-47.6%
63
33
(8)
-112.4%
-123.5%
Enaya
13
23
31
128.7%
31.9%
8
6
31
286.5%
387.9%
Alinma Tokio M
45
30
30
-34.2%
-1.3%
23
23
18
-23.1%
-23.7%
MetLife AIG Alarabi
37
46
59
59.1%
27.3%
33
36
66
97.3%
85.3%
Jazira Takaful
1
2
2
128.1%
26.9%
1
2
2
157.4%
16.8%
5,667
6,533
6,064
7.0%
-7.2%
6,344
5,505
5,692
-10.3%
3.4%
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q3-2016
Q2-2017
Q3-2017
MetLife AIG Alarabi
(4.2)
(3.2)
(10.4)
146.0%
Jazira Takaful
6.4
8.9
6.8
6.9%
Tawuniya
QoQ %Increase
Net Income
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
219.7%
(4.2)
(3.8)
(10.9)
158.9%
188.4%
-23.0%
6.0
8.1
6.5
9.2%
-19.8% -38.7%
283.2
248.8
159.7
-43.6%
-35.8%
259.6
231.0
141.5
-45.5%
Malath Insurance
1.3
5.0
11.1
730.9%
120.4%
0.0
3.5
9.6
NM*
171.5%
MEDGULF
60.0
(417.3)
60.1
0.1%
-114.4%
51.8
(440.0)
56.6
9.2%
-112.9%
Allianz SF
6.3
7.8
8.0
26.4%
2.3%
4.9
6.0
6.4
30.2%
6.0%
Salama
8.7
16.2
22.0
152.1%
36.3%
7.5
14.9
20.8
177.5%
39.4% 27.2%
Walaa Insurance
40.0
35.6
44.4
11.0%
24.7%
38.0
32.3
41.1
8.3%
Arabian Shield
18.7
22.3
23.1
23.6%
3.5%
16.1
19.2
20.0
24.7%
4.4%
SABB Takaful
2.7
1.8
2.1
-24.8%
15.5%
1.3
0.6
0.7
-47.0%
19.6%
SAICO
17.4
11.5
16.4
-5.6%
42.4%
15.5
9.8
14.4
-6.9%
46.6%
Wafa Insurance
8.7
2.9
(3.6)
-141.3%
-222.5%
8.4
1.1
(5.2)
-162.3%
-590.6% -76.7%
Gulf Union
(0.2)
5.8
2.0
-954.9%
-65.3%
(0.9)
4.0
0.9
-207.5%
ATC
7.1
11.1
8.7
22.5%
-21.5%
5.8
9.4
8.7
49.9%
-7.8%
Al Ahlia
(8.6)
4.1
3.2
-136.6%
-22.6%
(9.3)
3.4
2.0
-121.6%
-41.6% -51.6%
ACIG
4.7
6.6
3.9
-16.4%
-40.5%
3.8
6.1
3.0
-22.5%
AICC
(1.7)
3.6
3.9
-328.4%
6.0%
(1.7)
1.6
2.5
-248.2%
60.5%
Trade Union
27.2
25.1
16.7
-38.6%
-33.6%
25.7
22.6
16.7
-35.0%
-26.2%
Solidarity
14.1
12.9
19.6
39.1%
51.7%
13.4
13.1
17.8
33.1%
36.0%
Wataniya
8.0
7.7
8.2
1.9%
6.7%
7.4
6.9
5.8
-21.6%
-15.2% -757.6%
Amana Insurance
7.9
(1.8)
14.6
85.3%
-916.1%
7.6
(2.3)
15.1
98.2%
AXA-Cooperative
11.2
14.8
12.6
12.5%
-15.1%
7.5
10.8
8.8
16.8%
-18.4%
Gulf General
7.0
11.3
4.6
-33.4%
-59.0%
6.7
9.8
3.4
-48.8%
-65.1%
Buruj
8.6
27.8
24.0
180.5%
-13.7%
7.0
25.1
21.4
203.6%
-15.0%
Al Alamiya
12.2
7.1
8.8
-27.8%
23.9%
10.0
6.4
4.8
-51.6%
-24.3%
Saudi Re
2.7
13.4
(0.3)
-110.0%
-102.0%
(0.7)
9.4
(3.6)
436.8%
-138.6%
UCA
26.1
27.4
(2.2)
-108.3%
-107.9%
23.1
25.9
(3.7)
-115.9%
-114.1%
Bupa Arabia
260.4
145.8
217.0
-16.7%
48.8%
244.5
127.0
198.2
-18.9%
56.1%
Sagr Insurance
26.7
6.9
7.5
-71.7%
8.8%
21.8
2.3
5.1
-76.5%
123.5%
Chubb Arabia
9.5
9.8
7.8
-17.6%
-20.3%
7.6
8.1
5.8
-23.9%
-28.7%
Enaya
(6.3)
(3.5)
0.7
-111.6%
-120.9%
(6.5)
(4.1)
0.1
-102.0%
-103.1%
Al Rajihi Takaful
29.6
41.1
58.7
98.5%
42.9%
26.5
38.1
54.0
103.8%
41.6%
Alinma Tokio M
(1.1)
(7.5)
(3.2)
193.4%
-56.7%
(2.2)
(8.5)
(4.3)
94.6%
-49.7%
894.2
309.8
756.7
-15.4%
144.2%
802.1
197.9
664.1
-17.2%
Total
235.5%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,920.00
15.3
4.0
4.3%
METLIFE AIG ANB
525.35
NM*
2.4
Jazira Takaful
895.30
29.3
2.3
Tawuniya
MALATH INSURANCE
-2.03%
651.00
NM*
5.9
--
MEDGULF
1,175.60
NM*
2.5
--
Allianz SF
670.80
22.6
2.8
--
Salama
604.25
9.6
2.5
--
WALAA
1,290.80
9.3
2.4
--
Arabian Shield
830.60
7.5
2.3
4.8%
SABB Takaful
765.34
90.3
2.1
--
SAICO
437.50
8.3
1.3
--
WAFA Insurance
231.56
17.8
1.9
--
Gulf Union
238.35
7.5
1.5
ATC
518.65
13.5
2.2
Al-Ahlia
169.60
19.4
1.5
--
ACIG
319.40
29.3
2.3
--
AICC
483.10
27.6
1.9
--
Trade Union
503.25
8.4
1.4
Sagr Insurance
563.50
22.0
1.2
UCA
602.70
8.5
1.4
Saudi Re
640.00
10.2
0.8
Bupa Arabia
7,808.00
13.2
3.5
AlRajhi Takaful
-1.63%
-9.09% --1.50%
2,440.00
14.7
4.4
--
CHUBB
455.80
11.2
1.8
--
AXA Cooperative
869.40
16.6
1.6
--
Gulf General
311.60
12.2
1.5
Buruj
795.75
6.4
2.1
Al Alamiya
923.20
24.7
2.6
--
Solidarity
490.25
8.2
1.7
--
Wataniya
537.80
10.4
2.5
--
Amana Insurance
335.72
14.0
2.6
--
Enaya
436.80
NM*
2.7
--
Alinma Tokio M
548.10
NM*
2.0
--
39,989.07
13.4
2.7
--
Sector
-1.70%
Source: Argaam, *NM: Not meaningfull, prices as of 27th Nov 2017
RESEARCH DIVISION
Head of Research
Talha Nazar
BROKERAGE AND INVESTMENT CENTERS DIVISION
+966 11 2256115 [email protected]
Analyst
Sultan Al Kadi +966 11 2256374 [email protected]
Analyst
Analyst
Analyst
Jassim Al-Jubran
Waleed Al-Jubayr
Muhanad Al-Odan
+966 11 2256248 [email protected]
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services
AGM-Head of international and institutional
AGM- Head of Western and Southern Region
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
& sales
brokerage
Investment Centers
Central Region
Abdullah Al-Rahit
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-Shuaibi
Sultan Ibrahim AL-Mutawa
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
+966 16 3617547 [email protected]
+966 12 6618443 [email protected]
+966 11 2256364 [email protected]
RESEARCH DIVISION
AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business.
RATING TERMINOLOGY
1. 2. 3. 4.
Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.
Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
Asset Management | Brokerage | Corporate Finance | Custody | Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068
Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37
November 2017
Sector report | KSA | Q3-2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q3-2017
November 2017
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
Company Name
Codes
The Company for Cooperative Insurance
Tawuniya
Salama Cooperative Insurance Co.
Salama
UCA Cooperative Assurance Co.
UCA
Al-Rajhi Company for Cooperative Insurance
Al Rajihi Takaful
Al Alamiya for Cooperative Insurance Co.
Al Alamiya
Allied Cooperative Insurance Group
ACIG
Bupa Arabia for Cooperative Insurance Co.
Bupa Arabia
Arabian Shield Cooperative Insurance Co.
Arabian Shield
Buruj Cooperative Insurance Co.
Buruj
Al Sagr Cooperative Insurance Co.
Sagr Insurance
Malath Cooperative Insurance Co.
Malath Insurance
Solidarity Saudi Takaful Co.
Solidarity
Trade Union Cooperative Insurance Co.
Trade Union
Sanad Cooperative Insurance Company
Sanad
Walaa Cooperative Insurance Co.
Walaa
Allianz Saudi Fransi Cooperative Insurance Co.
Allianz SF
Al-Ahlia Insurance Co.
Al Ahlia
The Mediterranean and Gulf Insurance and Reinsurance Co.
MEDGULF
Saudi Indian Company for Cooperative Insurance
Wafa Insurance
SABB Takaful Co.
SABB Takaful
Saudi Arabian Cooperative Insurance Company
SAICO
Gulf Union Cooperative Insurance Co.
Gulf Union
Saudi Re for Cooperative Reinsurance Co.
Saudi Re
Arabia Insurance Cooperative Company
AICC
ALAHLI TAKAFUL COMPANY
ATC
AXA Cooperative Insurance Co.
AXA-Cooperative
Weqaya Takaful insurance and reinsurance Company
Weqaya Takaful
CHUBB Arabia Cooperative Insurance Co.
Chubb Arabia
Gulf General Cooperative Insurance Co.
Gulf General
Wataniya Insurance Co.
Wataniya
Amana Cooperative Insurance Co.
Amana Insurance
Saudi Enaya Cooperative Insurance Co.
Enaya
Alinma Tokio Marine Co.
Alinma Tokio
MetLife AIG ANB Cooperative Insurance Co.
MetLife
Aljazira Takaful Taawuni Co.
Jazira Takaful
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Gross Written Premium 30.2%
12000 10000
NWP (Net Written Premiums) in Q3-2017 stood at SAR 6.9bn, depicting a fall of 2.6%YoY.
8000
NPE (Net Premium Earned) in Q3-2017 at SAR 7.7bn showed a jump of 2.3%YoY.
4000
6000
20.4% 14.5%
26.7%
18.3% 19.3%
22.6% 22.7% 21.5%
12.2%
8.0%
GWP - LHS
NPE-Sector Wise
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q3 - 2017
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
-2.4%
Q4 - 2016
Q1 - 2017
-4.4%
2.3%
Q3 - 2017
2.2%
Q2 - 2017
6.8%
Q3 - 2016
19.9%
Q2 - 2016
Q1 - 2016
Q2 - 2015
Q4 - 2015
24.8% 27.2% 26.1% 23.8%
Q3 - 2015
25.1%
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
16.9%
32.1%
20.9%
Q2 - 2014
17.8%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
% Growth (YoY) - RHS
-6.0% -8.0%
Arabian Shield
-2.1%
AICC
Trade Union
Malath
0.6%
Bupa Arabia
-2.0%
0.8%
UCA
0.0%
-4.0%
Others
2.07%
MetLife AIG Alarabi
MEDGULF
2.66%
Tawuniya
Gulf General
Alinma Tokio M
Amana Insurance
UCA
ATC
Malath Insurance
Salama
Al Rajihi Takaful
Bupa Arabia
Enaya
Basis Points
1
3.7%
2.0%
AXA-Cooperative
20.4%
27.3%
6.0% 4.0%
17.2% 9.0%
Retention Ratio - RHS
Top 5 Gainers and Losers- GWP market Share Tawuniya
30.5%
Al Rajihi Takaful
6.2%
17.5%
24.4%
23.9%
NPE
Gross Written Premium- Market Share Bupa Arabia
13.4%
Q1 - 2013
Others
26.9%
Saudi Re
Others
Accident and Liability
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -
Q4 - 2012
Protection and Saving 60%
4.5%
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
0
Q4 - 2012
2,000
Q3 - 2012
34%
32.6%
Q1 - 2016
4,000
Q2 - 2012
Health
Motor
Top 5 and Bottom 5- Retention Ratio
Q4 - 2015
6,000
Al Rajihi Takaful
2% 2%
Energy
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Q3 - 2015
8,000
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
Net Premium Earned
Motor
55%
-2.1%
% Growth (YoY) - RHS
Premium Ceded - LHS
27%
-9.5%
10,000
Q3 - 2012
Retention Ratio: Industry retention ratio stood at 83% in Q3-2017, as compared to 85.8% in Q3-2016. Enaya has the highest retention ratio of 101% in Q3-2017 BUPA Arabia at 98.8% had the second highest retention ratio.
Property/ Fire
15.5%
32.0% 28.0% 24.0% -2.6% 0.74% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% -12.0%
12,000
Q2 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 5.3% in Q3-2016 to 7.7% in Q32017 an improvement of 240bps , followed by Saudi Re which showed an improvement of 266bps. Tawuniya improved its market share from 15.1% in Q3-2017 to 17.2% in Q3-2017.
4% 4%
-2.2% 2.0%
Premium Ceded-Industry
BUPA with 30.5% market share in GWP was the biggest player.
Health
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
0
Market Share
10%
16.7%
2000
Health Sector Accounted for 55% of the total GWP, followed by Motor which accounted for 27% of GWP
GWP-Sector WIse
11.9%
24.2% 24.6%
Q3 - 2017
GWP (Gross Written Premiums) in Q3-2017 stood at SAR 8.3bn depicting a jump of 0.7% YoY.
-0.9%
-0.6%
-0.5%
-5.7%
Source: Argaam, SAMA
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Gross Claims Paid 6,000
24% 22%
Claims Market Share-sector wise Others
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q1 - 2013
Q4 - 2012
40% 30%
19%
17%
7%
-2%
3.4%
0.2%
20% 10% 0%
Q3 - 2017
-10%
Q2 - 2017
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
-13.2%
Q3 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-20%
Q3 - 2017
Jazira Takaful
SABB Takaful
Amana Insurance
ATC
Al Alamiya
Al Ahlia
Solidarity
Sagr Insurance
Alinma Tokio M
Enaya
Chubb Arabia
Gulf General
AICC
Gulf Union
Saudi Re
MetLife AIG Alarabi
Buruj
ACIG
UCA
Arabian Shield
Wataniya
Wafa Insurance
Amana Insurance
ATC
Jazira Takaful
Q3 - 2017
Walaa Insurance
Buruj
Al Alamiya
Salama
Arabian Shield
Bupa Arabia
Chubb Arabia
Sagr Insurance
Al Rajihi Takaful
MEDGULF
Tawuniya
Al Ahlia
Trade Union
Malath Insurance
AICC
SAICO
Enaya
AXA
Allianz SF
Gulf General
SABB Takaful
ACIG
Saudi Re
Gulf Union
Wataniya
Wafa Insurance
MetLife AIG Alarabi
Jazira Takaful
ATC
SABB Takaful
zira Takaful
UCA
BB Takaful
Amana Insurance
Solidarity
Al Alamiya a Insurance
Chubb Arabia
Gulf General
Buruj ubb Arabia
Wataniya
Gulf Union ulf General
AICC
Enaya
Sagr Insurance
gr Insurance
Walaa
Arabian Shield
bian Shield
Alinma Tokio M
a Tokio M
a Insurance
SAICO
Saudi Re
Al Ahlia
Trade Union
ACIG
Salama
Allianz SF
Wafa Insurance
fa Insurance
Tawuniya
Bupa Arabia
AXA ooperative
upa Arabia
jihi Takaful
Al Rajihi Takaful
20.0%
Alinma Tokio M
40.0%
UCA
60.0%
Q3 - 2016
Solidarity
180% 160% 140% 120% 100% 80% 60% 40% 20% 0%
Q3 - 2017
80.0%
MetLife
21%
Combined Ratio Q3 - 2016
MEDGULF
Walaa Insurance
Others
SAICO
Engineering
Others
100.0%
AIG Alarabi
17%
23%
29%
Q3 - 2016
Salama
64%
Loss Ratio
th Insurance Malath Insurance
24%
1800 1600 1400 1200 1000 800 600 400 200 0
Trade Union
Protection and Saving
AXA
-
Allianz SF
Al Rajihi Takaful
120.0%
0.0%
17%
1,000
Malath Insurance
10%
50%
40%
-7%
AXA
25%
38%
25%
Al Rajihi Takaful
Malath
29%
3,000
MEDGULF
3%
24%
24%
Bupa Arabia
MEDGULF
8%
Motor
32%
3%
4,000
32%
60%
Claims Paid-Company wise
Health
Tawuniya
25%
5,000
70%
% Growth (YoY) - RHS
Net Claims Paid - LHS
IN MN SAR
Bupa Arabia
66%
6,000
Tawuniya
2% 2%
-7%
Net Claims Paid 7,000
2,000
UCA had the highest combined ratio of 153%, whereas Amana insurance had the lowest combined ratio of 23.4%. Claims Market Share-Company wise
Q3 - 2012
-
35% 30% 25% 20% 15% 7% 10% 5% 0% -5% -10%
7% -3% -1%
Q2 - 2015
Aljazira Takaful had the lowest loss ratio of 10.3%.
9%
1,500
Q1 - 2015
Malath insurance had the highest loss ratio of 99.0% in Q3-2017,followed by MedGulf at 88.1% in Q3-2017.
13%
9%
3,000
Aljazira Takaful paid the lowest claims of SAR 2.02mn. Health sector accounted for the highest share in claims at 64% , followed by Motor sector at 32%.
24%
17%
% Growth (YoY) - RHS
28%
18%
Q2 - 2012
BUPA Arabia with 25.3% market share in GCP paid the highest claims of SAR 1.33bn, followed by Tawuniya at 24.9% market share in claims.
25%
27% 19%
4,500 9%
Gross Claims Paid - LHS
23%
24%
Q4 - 2013
Market Share
31%
25%
Q3 - 2013
NCP (Net Claim Paid) in Q3-2017 stood at SAR 5.7bn, depicting a rise of 3.4%YoY.
30%
Q3 - 2017
7,500
Q2 - 2013
GCP (Gross Claims Paid) in Q3-2017 stood at SAR 6.1bn depicting a jump of 7.0% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017 Net Income 1,100
432
803
620
319
197.9
664.1
Q3 - 2017
285
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Wafa Insurance
Wafa Insurance
Alinma Tokio M
Gulf General
Walaa
MetLife AIG Alarabi
Alinma Tokio M
UCA
UCA Malath
Saudi Re
Enaya
SABB Takaful
Gulf Union Al Ahlia
AICC
ACIG
Gulf General
Al Alamiya
Chubb Arabia
Sagr Insurance
Wataniya
AXA
Allianz SF
Malath Insurance
SAICO
Amana Insurance
Trade Union
Solidarity
Arabian Shield
Salama
Buruj
Walaa Insurance
Al Rajihi Takaful
Tawuniya
Enaya
SABB Takaful
Al Ahlia
Gulf Union
AICC
ACIG
Gulf General
Jazira Takaful
Allianz SF
Sagr Insurance
Trade Union Al Ahlia
Al Alamiya
SAICO
Solidarity
Salama
Buruj
Arabian Shield
MEDGULF
Tawuniya
Alinma Tokio M
50 45 40 35 30 25 20 15 10 5 0
Wafa Insurance
Sagr Insurance
Gulf Union
Chubb Arabia
AICC
Arabian Shield
Enaya
ACIG
Salama
Wataniya
UCA
SAICO
Buruj
MetLife AIG
SABB Takaful
Amana
Jazira Takaful
Trade Union
AXA
MEDGULF
Saudi Re
Tawuniya
In Mn SAR
MEDGULF
Enaya
MetLife AIG
Alinma Tokio M
Malath Insurance Salama
Walaa Insurance
Solidarity
MEDGULF
MetLife AIG
Enaya
Walaa Insurance
Saudi Re
Al Rajihi Takaful
ATC
Bupa Arabia
Sagr Arabian Gulf Shield General
Bupa Arabia
-15.0%
Buruj
Salama
0.0%
-10.0%
122
Investment Income
5.0%
-5.0%
0
Al Rajihi Takaful
-80%
Chubb Arabia
10.0%
Arabian Shield
-60%
Walaa Insurance
-40%
Arabian Shield
-20%
Al Rajihi Takaful
Buruj
0%
Malath
20%
491
50 -50
ROA-Top 5/ Bottom 5 Alinma Tokio M
ROE-Top 5 /Bottom 5
Wataniya
5.0%
Chubb Arabia
0.5%
Jazira Takaful
10.0%
ATC
1.0%
ATC
15.0%
ATC
1.5%
AXA Cooperative
100
20.0%
Al Alamiya
2.0%
Malath Insurance
150
25.0%
Amana Insurance
2.5%
Solidarity
200
30.0%
Allianz SF
3.0%
40%
Q4 - 2012
Q3 - 2012
250
35.0%
Jazira Solidarity Amana Buruj Takaful
240
Surplus From Insurance Operations
In Mn SAR
Net Margins-Highest 10 40.0%
MEDGULF
0
-100
0.0%
(31)
50
Operating Margins-Highest 10
Wataniya Sagr
233
100
4.0%
ATC
405
150
-50
Buruj also posted the highest ROA of 11.0%.
Chubb Arabian Arabia Shield
199
200
Bupa Arabia
Buruj posted the highest ROE of 35.8%
Walaa
(1,159) (41)
3
Net Income-Company wise
In Mn SAR
Solidarity showed the highest Operating margins at 3.8%, whereas Jazira takaful showed the highest net margin at 35.7%, respectively.
Buruj
(117)
(900) (1,300)
AlRajhi takaful showed the highest investment income of SAR 47.8mn in the sector, registering growth of 62.7%YoY and 9.9%QoQ.
Solidarity Jazira Amana Takaful
(49)
179
(500)
BUPA showed the highest surplus, from its insurance operations , at SAR 229.4mn, depicting a fall of 21.0%YoY and a QoQ jump of 57.8%.
0.0%
340
Q2 - 2017
300 (100)
BUPA with net income of SAR 198.2mn, showed a fall of 18.3%YoY.
3.5%
17.3% YoY235.5% QoQ
700 In MN SAR
Net income for the sector stood at SAR 664.1mn in Q3-2017, as compared to SAR 802.1mn in Q3-2016, depicting a fall of 17.2%. On a QoQ basis net income showed a 235.5% increase. Net income before Zakat stood at SAR 756.7mn, depicting a fall of 15.4%, whereas a 144.2% jump on QoQ basis
Source: Argaam
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
United Cooperative Assurance had the lowest PE of 8.3x, followed by Buruj with a PE of 8.5x. Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.8x, followed by Sagr insurance with a PB of 1.4x Only 5 companies gave out dividends, SAGR insurance had the highest dividend yield of 9.1% followed by Arabian Sheild with a dividend yield of 4.8%
Lowest PE 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Tawuniya-1 Yr Performance 5,500.00
7,700.00
105
7,500.00
5,300.00
7,500.00
100
7,300.00
5,100.00
7,300.00
7,100.00
4,900.00
7,100.00
6,900.00
4,700.00
6,900.00
6,700.00
4,500.00
6,700.00
4,300.00
6,500.00 Dec 2016
6,500.00 Dec 2016
Mar 2017
Jun 2017
Sep 2017
95 90 85 Mar 2017
Insurance Sector (RHS)
TASI (LHS)
Jun 2017
Insurance Sector (LHS)
BUPA-1 Yr Performance
Sep 2017
80
140
7,700.00
65
7,500.00
130
7,500.00
60
7,100.00 110
6,900.00
6,700.00
90
6,500.00 Dec 2016
Insurance Sector (LHS)
Sep 2017
80
7,700.00
7,500.00
70
7,500.00
60
7,300.00
50
7,100.00 6,900.00 6,700.00 Jun 2017
Insurance Sector (LHS)
35 Mar 2017
Jun 2017
Sep 2017
30
Alrajhi takaful (RHS)
Walaa-1 Yr Performance
7,700.00
Mar 2017
40
Insurance Sector (LHS)
Bupa (RHS)
Medgulf-1 Yr Performance
6,500.00 Dec 2016
45
6,900.00
6,500.00 Dec 2016
Jun 2017
50
7,100.00
6,700.00 Mar 2017
55
7,300.00
100
Sep 2017
Medgulf (RHS)
7,100.00
30
6,900.00
20
6,700.00
10
30 25 20
6,500.00 Dec 2016
Mar 2017
Solidarity
Sagr Insurance
SAICO
UCA
SAICO
Trade Union
UCA
WALAA
Salama
Saudi Re
Saudi Re
Trade Union Gulf General
Gulf Union
Al-Ahlia
AXA Cooperative
Solidarity
10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
9.1%
4.8%
Sagr Insurance
Arabian Shield
4.3%
Tawuniya
2.0%
1.7%
Jazira Takaful
Buruj
Top 5 Companies-Market Cap 35
7,300.00
40
Gulf Union
Highest Dividend Yield
7,700.00
120
2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0
Tawuniya (RHS)
Alrajhi Takaful-1 Yr Performance
7,300.00
Arabian Shield
Lowest PB
7,700.00
Jun 2017
Insurance Sector (LHS)
Sep 2017
WALAA (RHS)
15
12,000 10,000 In Mn SAR
Tadawul Insurance Index- 1 Yr Performance
Buruj
8,000 6,000 4,000 2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
WALAA
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
Q3-2016
Q2-2017
Q3-2017
Q3-2016
Q2-2017
Q3-2017
MetLife AIG Alarabi
36
88
103
185.4%
17.1%
26
63
89
241.7%
41.2%
42
55
69
66.1%
25.5%
Jazira Takaful
29
32
28
-5.9%
-13.2%
15
13
13
-10.2%
1.0%
7
9
7
-2.9%
-18.9%
Tawuniya
1,241
2,104
1,421
14.5%
-32.5%
1,077
1,764
1,161
7.7%
-34.2%
1,759
1,832
1,883
7.0%
2.8%
Malath Insurance
531
144
62
-88.3%
-56.8%
466
127
55
-88.2%
-56.6%
351
227
220
-37.3%
-3.2%
MEDGULF
511
869
513
0.4%
-40.9%
420
702
426
1.3%
-39.4%
714
586
565
-20.9%
-3.7%
Allianz SF
180
227
147
-18.0%
-35.2%
115
134
102
-11.0%
NM*
130
166
160
23.3%
NM*
Salama
132
202
159
20.4%
-21.3%
125
194
148
18.9%
-23.7%
113
168
181
60.3%
7.9%
Walaa Insurance
268
218
284
5.9%
30.7%
193
173
174
-9.6%
0.7%
161
200
196
21.7%
-2.2%
Arabian Shield
153
165
115
-24.5%
-30.2%
101
114
79
-22.0%
-30.6%
102
122
106
3.3%
-13.5%
SABB Takaful
49
45
51
2.8%
11.6%
36
34
39
6.9%
14.3%
32
34
33
3.0%
-4.3%
SAICO
160
149
157
-2.1%
5.5%
108
105
142
31.6%
36.0%
124
130
142
14.6%
9.1%
Wafa Insurance
93
119
100
7.1%
-16.1%
78
73
62
-20.8%
-15.5%
126
101
98
-22.4%
-3.3%
Gulf Union
46
79
32
-29.4%
-58.9%
26
52
17
-35.2%
-67.2%
23
56
54
130.2%
-4.1%
ATC
115
58
120
4.1%
106.1%
29
10
24
-17.8%
132.3%
21
21
16
-24.3%
-24.3%
Al Ahlia
43
46
53
23.0%
14.7%
38
43
48
25.0%
12.1%
43
37
37
-15.5%
-1.4%
ACIG
136
102
113
-17.4%
10.3%
115
88
98
-14.2%
12.0%
110
87
82
-24.9%
-5.6%
AICC
110
69
59
-46.5%
-14.5%
96
46
38
-60.8%
-19.0%
70
73
54
-23.8%
-26.4%
Trade Union
274
289
103
-62.5%
-64.4%
231
245
77
-66.8%
-68.7%
193
189
176
-9.0%
-6.9%
Solidarity
55
21
37
-33.3%
79.5%
48
18
30
-37.9%
70.7%
52
43
40
-23.7%
-8.0%
Wataniya
148
83
152
2.4%
83.6%
89
42
88
-1.5%
106.5%
65
74
73
11.9%
-1.7%
Amana Insurance
11
16
9
-18.4%
-44.6%
4
6
7
72.0%
16.0%
58
14
11
-81.6%
-24.1%
AXA-Cooperative
387
220
369
-4.6%
67.9%
346
195
334
-3.5%
71.4%
265
323
300
13.5%
-6.9%
Gulf General
37
46
26
-29.9%
-44.5%
17
23
11
-35.5%
-54.1%
34
29
23
-31.8%
-19.5%
Buruj
109
144
95
-12.8%
-34.4%
92
133
81
-12.3%
-39.3%
100
117
131
30.7%
11.6%
Al Alamiya
64
48
57
-11.0%
18.8%
27
26
21
-20.8%
-16.1%
50
46
39
-22.5%
-14.4%
Saudi Re
82
121
303
267.0%
150.2%
75
89
89
18.9%
0.9%
119
143
150
26.0%
5.0%
UCA
64
251
116
82.5%
-53.7%
25
61
39
51.3%
-36.7%
146
52
37
-75.0%
-30.0%
Bupa Arabia
2,579
1,848
2,523
-2.2%
36.5%
2,567
1,832
2,497
-2.7%
36.3%
1,939
1,909
1,937
-0.1%
1.4%
Sagr Insurance
13
93
61
380.0%
-34.6%
(9)
68
56
-744.3%
-18.0%
95
42
58
-39.1%
36.6%
Chubb Arabia
42
48
42
0.6%
-13.4%
17
28
14
-16.8%
-49.0%
29
27
26
-11.1%
-2.7%
Enaya
21
66
59
178.0%
-10.3%
13
65
60
365.4%
-8.6%
14
34
52
270.2%
55.5%
Al Rajhi Takaful
434
680
742
71.2%
9.2%
410
649
711
73.2%
9.6%
407
686
719
76.5%
4.8%
Alinma Tokio M
47
103
51
7.8%
-50.9%
17
25
27
58.8%
8.7%
33
32
35
4.0%
9.1%
8,201
8,794
8,261
0.7%
-6.1%
7,035
7,240
6,856
-2.5%
-5.3%
7,529
7,665
7,706
2.4%
0.5%
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 2 Gross Claims Paid Tawuniya Salama
YoY %Increase
Q3-2016
Q2-2017
Q3-2017
1,237
1,519
1,512
22.2%
62
112
113
81.6%
QoQ %Increase
Net Claims Paid
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
-0.5%
1,306
1,230
1,484
13.6%
20.6%
1.0%
80
83
128
60.0%
54.1% -84.6%
UCA
187
64
60
-67.9%
-5.6%
124
98
15
-87.8%
Al Rajhi Takaful
287
559
462
60.8%
-17.4%
303
329
592
95.1%
79.9%
Al Alamiya
28
23
18
-34.6%
-21.6%
25
25
12
-51.9%
-52.2% -28.0%
ACIG Bupa Arabia Arabian Shield
75
73
60
-19.6%
-17.6%
81
79
57
-29.7%
1,333
1,647
1,536
15.2%
-6.8%
1,511
1,399
1,475
-2.4%
5.5%
43
90
69
58.8%
-23.3%
66
66
61
-6.8%
-7.1%
Buruj
42
61
59
42.1%
-3.8%
56
65
78
39.1%
20.6%
Sagr Insurance
59
42
26
-56.2%
-39.0%
69
41
35
-48.8%
-14.6%
Malath Insurance
436
264
198
-54.6%
-25.0%
400
472
168
-58.1%
-64.5%
Solidarity
36
26
24
-33.6%
-7.2%
25
18
6
-77.3%
-69.0% -24.1%
Trade Union
142
143
141
-0.8%
-1.3%
176
153
116
-34.0%
Walaa Insurance
67
125
101
49.2%
-19.5%
79
83
100
25.9%
20.0%
Allianz SF
89
147
160
79.7%
8.9%
100
102
124
23.8%
22.1%
Al Ahlia
31
24
23
-27.3%
-5.5%
36
27
22
-38.9%
-18.9%
MEDGULF
666
633
632
-5.1%
-0.0%
657
539
459
-30.2%
-14.9%
Wafa Insurance
104
149
96
-7.8%
-35.4%
102
94
74
-27.6%
-21.5%
5
15
8
57.3%
-45.9%
4
5
3
-18.6%
-41.1%
SAICO
93
135
110
18.6%
-19.0%
80
76
95
19.3%
26.1%
Gulf Union
20
47
50
157.5%
7.9%
11
12
31
170.0%
154.0%
SABB Takaful
Saudi Re
48
82
57
19.8%
-30.3%
569
77
114
-79.9%
48.7%
AICC
73
63
47
-35.4%
-25.5%
56
37
27
-52.6%
-28.2% -107.1%
ATC
11
35
18
65.2%
-48.7%
4
5
(0)
-108.3%
AXA-Cooperative
206
211
203
-1.5%
-4.1%
219
217
238
8.4%
9.7%
Chubb Arabia
28
29
31
11.3%
7.3%
10
14
10
8.3%
-27.8% -38.0%
Gulf General
39
35
39
-1.6%
9.1%
20
16
10
-48.3%
Wataniya
75
57
80
6.7%
39.8%
46
42
49
7.1%
15.8%
Amana Insurance
48
22
12
-76.0%
-47.6%
63
33
(8)
-112.4%
-123.5%
Enaya
13
23
31
128.7%
31.9%
8
6
31
286.5%
387.9%
Alinma Tokio M
45
30
30
-34.2%
-1.3%
23
23
18
-23.1%
-23.7%
MetLife AIG Alarabi
37
46
59
59.1%
27.3%
33
36
66
97.3%
85.3%
Jazira Takaful
1
2
2
128.1%
26.9%
1
2
2
157.4%
16.8%
5,667
6,533
6,064
7.0%
-7.2%
6,344
5,505
5,692
-10.3%
3.4%
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q3-2016
Q2-2017
Q3-2017
MetLife AIG Alarabi
(4.2)
(3.2)
(10.4)
146.0%
Jazira Takaful
6.4
8.9
6.8
6.9%
Tawuniya
QoQ %Increase
Net Income
YoY %Increase
QoQ %Increase
Q3-2016
Q2-2017
Q3-2017
219.7%
(4.2)
(3.8)
(10.9)
158.9%
188.4%
-23.0%
6.0
8.1
6.5
9.2%
-19.8% -38.7%
283.2
248.8
159.7
-43.6%
-35.8%
259.6
231.0
141.5
-45.5%
Malath Insurance
1.3
5.0
11.1
730.9%
120.4%
0.0
3.5
9.6
NM*
171.5%
MEDGULF
60.0
(417.3)
60.1
0.1%
-114.4%
51.8
(440.0)
56.6
9.2%
-112.9%
Allianz SF
6.3
7.8
8.0
26.4%
2.3%
4.9
6.0
6.4
30.2%
6.0%
Salama
8.7
16.2
22.0
152.1%
36.3%
7.5
14.9
20.8
177.5%
39.4% 27.2%
Walaa Insurance
40.0
35.6
44.4
11.0%
24.7%
38.0
32.3
41.1
8.3%
Arabian Shield
18.7
22.3
23.1
23.6%
3.5%
16.1
19.2
20.0
24.7%
4.4%
SABB Takaful
2.7
1.8
2.1
-24.8%
15.5%
1.3
0.6
0.7
-47.0%
19.6%
SAICO
17.4
11.5
16.4
-5.6%
42.4%
15.5
9.8
14.4
-6.9%
46.6%
Wafa Insurance
8.7
2.9
(3.6)
-141.3%
-222.5%
8.4
1.1
(5.2)
-162.3%
-590.6% -76.7%
Gulf Union
(0.2)
5.8
2.0
-954.9%
-65.3%
(0.9)
4.0
0.9
-207.5%
ATC
7.1
11.1
8.7
22.5%
-21.5%
5.8
9.4
8.7
49.9%
-7.8%
Al Ahlia
(8.6)
4.1
3.2
-136.6%
-22.6%
(9.3)
3.4
2.0
-121.6%
-41.6% -51.6%
ACIG
4.7
6.6
3.9
-16.4%
-40.5%
3.8
6.1
3.0
-22.5%
AICC
(1.7)
3.6
3.9
-328.4%
6.0%
(1.7)
1.6
2.5
-248.2%
60.5%
Trade Union
27.2
25.1
16.7
-38.6%
-33.6%
25.7
22.6
16.7
-35.0%
-26.2%
Solidarity
14.1
12.9
19.6
39.1%
51.7%
13.4
13.1
17.8
33.1%
36.0%
Wataniya
8.0
7.7
8.2
1.9%
6.7%
7.4
6.9
5.8
-21.6%
-15.2% -757.6%
Amana Insurance
7.9
(1.8)
14.6
85.3%
-916.1%
7.6
(2.3)
15.1
98.2%
AXA-Cooperative
11.2
14.8
12.6
12.5%
-15.1%
7.5
10.8
8.8
16.8%
-18.4%
Gulf General
7.0
11.3
4.6
-33.4%
-59.0%
6.7
9.8
3.4
-48.8%
-65.1%
Buruj
8.6
27.8
24.0
180.5%
-13.7%
7.0
25.1
21.4
203.6%
-15.0%
Al Alamiya
12.2
7.1
8.8
-27.8%
23.9%
10.0
6.4
4.8
-51.6%
-24.3%
Saudi Re
2.7
13.4
(0.3)
-110.0%
-102.0%
(0.7)
9.4
(3.6)
436.8%
-138.6%
UCA
26.1
27.4
(2.2)
-108.3%
-107.9%
23.1
25.9
(3.7)
-115.9%
-114.1%
Bupa Arabia
260.4
145.8
217.0
-16.7%
48.8%
244.5
127.0
198.2
-18.9%
56.1%
Sagr Insurance
26.7
6.9
7.5
-71.7%
8.8%
21.8
2.3
5.1
-76.5%
123.5%
Chubb Arabia
9.5
9.8
7.8
-17.6%
-20.3%
7.6
8.1
5.8
-23.9%
-28.7%
Enaya
(6.3)
(3.5)
0.7
-111.6%
-120.9%
(6.5)
(4.1)
0.1
-102.0%
-103.1%
Al Rajihi Takaful
29.6
41.1
58.7
98.5%
42.9%
26.5
38.1
54.0
103.8%
41.6%
Alinma Tokio M
(1.1)
(7.5)
(3.2)
193.4%
-56.7%
(2.2)
(8.5)
(4.3)
94.6%
-49.7%
894.2
309.8
756.7
-15.4%
144.2%
802.1
197.9
664.1
-17.2%
Total
235.5%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
November 2017 Please read Disclaimer on the back
Sector report | KSA | Q3-2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,920.00
15.3
4.0
4.3%
METLIFE AIG ANB
525.35
NM*
2.4
Jazira Takaful
895.30
29.3
2.3
Tawuniya
MALATH INSURANCE
-2.03%
651.00
NM*
5.9
--
MEDGULF
1,175.60
NM*
2.5
--
Allianz SF
670.80
22.6
2.8
--
Salama
604.25
9.6
2.5
--
WALAA
1,290.80
9.3
2.4
--
Arabian Shield
830.60
7.5
2.3
4.8%
SABB Takaful
765.34
90.3
2.1
--
SAICO
437.50
8.3
1.3
--
WAFA Insurance
231.56
17.8
1.9
--
Gulf Union
238.35
7.5
1.5
ATC
518.65
13.5
2.2
Al-Ahlia
169.60
19.4
1.5
--
ACIG
319.40
29.3
2.3
--
AICC
483.10
27.6
1.9
--
Trade Union
503.25
8.4
1.4
Sagr Insurance
563.50
22.0
1.2
UCA
602.70
8.5
1.4
Saudi Re
640.00
10.2
0.8
Bupa Arabia
7,808.00
13.2
3.5
AlRajhi Takaful
-1.63%
-9.09% --1.50%
2,440.00
14.7
4.4
--
CHUBB
455.80
11.2
1.8
--
AXA Cooperative
869.40
16.6
1.6
--
Gulf General
311.60
12.2
1.5
Buruj
795.75
6.4
2.1
Al Alamiya
923.20
24.7
2.6
--
Solidarity
490.25
8.2
1.7
--
Wataniya
537.80
10.4
2.5
--
Amana Insurance
335.72
14.0
2.6
--
Enaya
436.80
NM*
2.7
--
Alinma Tokio M
548.10
NM*
2.0
--
39,989.07
13.4
2.7
--
Sector
-1.70%
Source: Argaam, *NM: Not meaningfull, prices as of 27th Nov 2017
RESEARCH DIVISION
Head of Research
Talha Nazar
BROKERAGE AND INVESTMENT CENTERS DIVISION
+966 11 2256115 [email protected]
Analyst
Sultan Al Kadi +966 11 2256374 [email protected]
Analyst
Analyst
Analyst
Jassim Al-Jubran
Waleed Al-Jubayr
Muhanad Al-Odan
+966 11 2256248 [email protected]
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services
AGM-Head of international and institutional
AGM- Head of Western and Southern Region
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
& sales
brokerage
Investment Centers
Central Region
Abdullah Al-Rahit
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-Shuaibi
Sultan Ibrahim AL-Mutawa
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
+966 16 3617547 [email protected]
+966 12 6618443 [email protected]
+966 11 2256364 [email protected]
RESEARCH DIVISION
AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business.
RATING TERMINOLOGY
1. 2. 3. 4.
Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.
Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
Asset Management | Brokerage | Corporate Finance | Custody | Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068
Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37
