Saudi Insurance Sector- Quarterly
Insurance Sector Report
June 2017
Sector report | KSA | 1st Quarter 2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q1-2017
June 2017
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 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
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017 Gross Written Premium
8000
NPE (Net Premium Earned) in Q1-2017 at SAR 7.4bn showed a fall of 2.4%YoY.
4000
12.2%
19.3%
26.7%
22.6%
22.7%
NPE-Sector Wise
10%
Q1 - 2017
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q1 - 2015
Q2 - 2015
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q1 - 2016
Q3 - 2016
Q4 - 2016
Q1 - 2017
2.2% -2.4%
Q2 - 2016
6.8%
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
24.8% 19.9%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
-0.5%
-4.5% Others
-6.5%
AXA
0.8%
-2.0%
-1.2%
Trade Union
1.3%
Bupa Arabia
MEDGULF
UCA
2.4%
MEDGULF
3.2%
Malath
5.1%
3.5%
-2.5%
AXA Cooperative
27.2% 26.1% 23.8%
% Growth (YoY) - RHS
Salama
5.5%
Tawuniya
18%
20.9%
Allianz SF
Tawuniya
1.5% Al Rajihi Takaful
16.9%
25.1%
Q1 - 2015
17.8%
32.1%
Q4 - 2014
20.4%
27.3%
24.4%
Top 5 Gainers and Losers- GWP market Share
40%
7%
Retention Ratio - RHS
Q3 - 2014
-
17.5%
23.9%
Q2 - 2014
13.4%
26.9%
Q1 - 2014
19.4%
NPE
Gross Written Premium- Market Share Bupa Arabia
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
Q4 - 2013
Others
6%
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Premium Ceded - LHS
Q3 - 2013
Protection and Saving
59%
Others
Jazira Chubb Gulf Takaful Arabia General
0
Q2 - 2013
35%
Accident and Liability
UCA
2,000
Q1 - 2013
Motor
20%
Bupa Al Rajihi Salama Saudi Al Ahlia ATC Arabia Takaful Re
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
4,000
Q4 - 2012
Health
1%
Accident and Liability
Top 5 and Bottom 5- Retention Ratio
% Growth (YoY) - RHS
6,000
Q3 - 2012
38%
Property/ Fire
-2.1%
Net Premium Earned
3%
Motor 46%
-9.6%
8,000
Q2 - 2012
2%
2.0%
15.5%
10,000
Q1 - 2012
Health
8%
24.6% 16.7%
32.0% 28.0% 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% -12.0%
-2.2%
Premium Ceded-Industry
Al Rajihi Takaful
GWP-Sector WIse
11.9%
12,000
Q2 - 2012
Retention Ratio: Industry retention ratio stood at 86.0% in 1Q-2017, as compared to 81.7% in 1Q-2016. BUPA Arabia has the highest retention ratio of 99% in 1Q-2017. AlRajhi Takaful at 96.4% had the second highest retention ratio
21.5%
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
0
Q1 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 4.5% in 1Q-2016 to 9.6% in 1Q2017 an improvement of 510bps , followed by Tawuniya which showed an improvement of 320bps.
100% 90% 80% 70% 60% 50% 40% 30% d Liability 20% 10% 0%
18.3%
24.2%
GWP - LHS
BUPA Arabia with 20% market share in GWP was the biggest player, followed by Tawuniya at 18%.
2%
14.5%
30.2%
2000
Market Share
6%
8.0%
Q3 - 2012
Health Sector accounted for 46% of the total GWP, followed by Motor which accounted for 38% of GWP
6000
9.0%
20.4%
Q4 - 2016
NWP (Net Written Premiums) in Q1-2017 stood at SAR 9.9bn, depicting a jump of 3.0%YoY.
Q2 - 2012
10000
Q3 - 2016
12000
Q1 - 2012
GWP (Gross Written Premiums) in Q1-2017 stood at SAR 11.5bn depicting a fall of 2.2% YoY.
-0.6%
-3.7% -6.2%
Source: Argaam, SAMA
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017 Gross Claims Paid 7,500
30% 24%
6,000 4,500 3,000
6,000
34%
15%
7%
10% 5%
-1%
0%
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2014
24%
23%
17%
21%
% Growth (YoY) - RHS 29%
17%
35% 30% 25%
19%
20% 15%
7%
2,000
-2%
1,000
10%
0.2%
5% 0%
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-5%
Loss Ratio
Jazira Takaful
Chubb Arabia
SABB Takaful
Al Alamiya
ATC
Enaya
Al Ahlia
Solidarity
Gulf General
Q1 - 2017
Gulf Union
MetLife
Amana Insurance
Sagr Insurance
Buruj
Wataniya
Saudi Re
AICC
ACIG
Alinma Tokio M
SAICO
Arabian Shield
Salama
UCA
Walaa
Trade Union
Allianz SF
Wafa Insurance
Q1 - 2016
AXA
1800 1600 1400 1200 1000 800 600 400 200 0
Others
Combined Ratio
120%
Q1 - 2016
100%
180%
Q1 - 2017
Q1 - 2016
130%
80% 60%
Q1 - 2017
80%
40% 20%
Jazira Takaful
ATC
Al Alamiya
UCA
Solidarity
Chubb Arabia
Buruj
Walaa Insurance
Salama
Tawuniya
Arabian Shield
Al Rajihi Takaful
Trade Union
AICC
ACIG
AXA - Coop
Allianz SF
Bupa Arabia
Wafa Insurance
Al Ahlia
Sagr Insurance
SABB Takaful
SAICO
Saudi Re
Wataniya
Gulf Union
Alinma Tokio M
MEDGULF
Enaya
MetLife
Malath Insurance
Gulf General
- 20%
Amana Insurance
Jazira Takaful
ATC
SABB Takaful
Solidarity
Al Alamiya
Chubb Arabia
Buruj
Sagr Insurance
Enaya
Gulf Union
Gulf General
UCA
Wataniya
AICC
Walaa
SAICO
Arabian Shield
Al Ahlia
Amana Insurance
Salama
Alinma Tokio M
Tawuniya
Allianz SF
ACIG
Trade Union
Saudi Re
Wafa Insurance
AXA
Bupa Arabia
Al Rajihi Takaful
MetLife
MEDGULF
30%
Malath Insurance
0%
20%
9%
3,000
Property/ Fire
Others
10%
25% 13%
Net Claims Paid - LHS
25% 17%
Al Rajihi Takaful
62%
22%
7%
29%
5,000
Malath Insurance
5%
32%
24%
MEDGULF
AXA - Coop
24%
Tawuniya
Malath
Protection and Saving
4%
Q2 - 2013
Q1 - 2012 7,000
Health
33%
30%
Net Claims Paid
IN MN SAR
Al Rajihi Takaful
24%
Claims Paid-Company wise
Motor MEDGULF
18%
35%
% Growth (YoY) - RHS
28%
-5%
Q1 - 2012 25%
%27
2% 2%
Tawuniya
23%
-3%
Bupa Arabia
Bupa Arabia
Claims Market Share-sector wise Others
Gross Claims Paid - LHS
9%
4,000
Amana Insurance had the highest combined ratio of 148%, whereas Aljazira Takaful had the lowest combined ratio of 48%.
Claims Market Share-Company wise Others
17%
Q3 - 2014
Aljazira Takaful had the lowest loss ratio of 9.4%.
19%
Q2 - 2014
Malath insurance had the highest loss ratio of 120% in Q1-2017, followed by Metlife at 86% in Q1-2017.
31%
24%
1,500
Aljazira Takaful paid the lowest claims of SAR 7.0mn. Health sector accounted for the highest share in claims at 62% , followed by Motor sector at 33%.
25%
9%
Q3 - 2012
BUPA Arabia with 20% market share in GWP paid the highest claims of SAR 1.5bn, showing a market share of 25%, followed by Tawuniya at 22%.
27%
17%
Q2 - 2012
Market Share
22%
Q4 - 2012
NCP (Net Claim Paid) in Q1-2017 stood at SAR 5.9bn, depicting a jump of 0.2%YoY.
Q1 - 2013
GCP (Gross Claims Paid) in Q1-2017 stood at SAR 6.4bn depicting a fall of 1.4% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
803
700 300
340
125
179
19
(100)
(49)
SAGR Insurance showed the highest Operating and net margins at 5.3% and 42.3%, respectively.
100
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
Amana Insurance
Enaya
MetLife
MEDGULF
Amana Insurance
Enaya
MetLife
MEDGULF
Alinma Tokio M
SABB Takaful
Alinma Tokio M
Gulf General
SABB Takaful
Al Ahlia
Al Ahlia Sagr Insurance
Alinma Tokio M
Salama
Chubb Arabia
Gulf General
Wafa Insurance
Wafa Insurance
Enaya
Saudi Re
AICC
Saudi Re
ACIG
Sagr Insurance
UCA
ACIG
Gulf Union
Trade Union
Jazira Takaful
Allianz SF
Malath Insurance
SAICO
ATC
Chubb Arabia
Solidarity
Salama
AXA - Cooperative
Al Alamiya
Wataniya
Arabian Shield
Buruj
Bupa Arabia
Gulf Union
Jazira Takaful
AICC
Arabian Shield
Amana Insurance
SAICO
Allianz SF
Walaa Insurance
ATC
Allianz SF
ACIG
Chubb Arabia
Al Ahlia
MetLife
Solidarity
Malath Insurance
ATC
Trade Union
AXA - Cooperative
Salama
Wataniya
Al Alamiya
Buruj
Arabian Shield
Bupa Arabia
Al Rajihi Takaful
Trade Union
Gulf General
Wafa Insurance
Malath Insurance
AICC
Gulf Union
Al Alamiya
MEDGULF
Solidarity
Sagr Insurance
Buruj
SAICO
SABB Takaful
Cooperative AXA -
Jazira Takaful
Solidarity
Bupa Arabia
8.0% 10.0%
Saudi Re
6.0%
Sagr Insurance
4.0%
Arabian Shield
In Mn SAR
Enaya
Malath Insurance
MetLife
0.0%
Walaa
2.0%
Al Ahlia
Alinma Tokio M
4.0%
Buruj
Malath
Sanad
Enaya
Al Ahlia
MetLife UCA
Walaa
Buruj
Tawuniya
Wataniya
6.0%
45 40 35 30 25 20 15 10 5 0
Tawuniya
Investment Income
Others
8.0%
2.0%
UCA
Gulf Union
Walaa Insurance
Chubb Arabian Walaa Gulf ATC Arabia Shield General
10.0%
20.0%
-100.0%
Jazira Solidarity Buruj Takaful
ROA-Top 5/ Bottom 5
Others
40.0%
0.0%
-100
Sagr
Al Rajihi Takaful
ROE-Top 5 /Bottom 5
0.0%
0
-50
1.0% Sagr Jazira Solidarity Buruj Chubb Amana Arabian Walaa ATC Gulf Union Takaful Arabia Shield
50
Tawuniya
In Mn SAR
20.0%
2.0%
-80.0%
11.7% YoY -48.6% QoQ
100
3.0%
-60.0%
(31)
319
150
40.0%
4.0%
620
Surplus From Insurance Operations
Others
5.0%
-40.0%
122
Wataniya
Net Margins-Highest 10 60.0%
Walaa Insurance
UCA
-100
Al Rajihi Takaful
Tawuniya
0 -50
-20.0%
285
432
150
Buruj Co-Operative posted the highest ROA of 9.9%.
0.0%
240
233
50
Wataniya posted the highest ROE of 34.8%
Others
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Net Income-Company wise
Operating Margins-Highest 10
491
(1,159)
AlRajhi Takaful showed the highest investment income of SAR 39.3mn in the sector, registering growth of 37.6%YoY and a fall of 29.6%QoQ.
6.0%
405
(41)
(117)
(900) (1,300)
199
3
(500)
Q2 - 2012
Tawuniya showed the highest surplus, from its insurance operations , at SAR 136.6mn, depicting a jump of 103.6% and a fall of 29.5%
1,100
Q1 - 2012
Tawuniya with net income of SAR 142.6mn contributed 44.7% to the sector’s income, depicting a jump of 202%YoY, a 25.5%QoQ fall.
Net Income
In MN SAR
Net income for the sector stood at SAR 318.8mn in 1Q-2017, as compared to SAR 285.5mn in 1Q-2016, depicting a jump of 11.7%. On a QoQ basis net income showed a decline of 48.5%.
Source: Argaam
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
United Cooperative Assurance had the lowest PE of 5.8x, followed by Buruj Cooperative insurance with a PE of 6.9x. 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 7.0% followed by Tawuniya with a dividend yield of 4.3%
Tawuniya-1 Yr Performance
Tadawul Insurance Index- 1 Yr Performance 7500
6000
6000
7000
5500
5500
5000
5000
4500
4500
4000
4000
5500
3500
3500
5000
3000
3000
6000
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 TASI (LHS)
BUPA-1 Yr Performance 5500 5000
3000 2500 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS)
70
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017
50
3500 3000 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) Medgulf (RHS)
0.2 0.0
Saudi Re Insurance
Tawuniya (RHS)
90
3500
10
3000
0
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) Alrajhi takaful (RHS)
10
4500 4000
Gulf
Trade Union
AICC
Solidarity
UCA
SAICO
Al -Ahlia
Gulf Union
7.0%
6.0% 5.0%
4.3%
4.0%
4.1%
3.0% 1.8%
2.0%
1.6%
1.0% 0.0%
Walaa-1 Yr Performance
5000
Sagr
Highest Dividend Yield
20
15
Arabian Shield
0.4
4000
20
WAFA Insurance
0.6
100
25
Trade Union
0.8
30
5500
Gulf Union
1.0
4500
30
WALAA
1.2
40
5500
Sagr Insurance
1.4
5000
6000
SAICO
1.6
7.0%
35
Solidarity
1.8
8.0%
80
Buruj
2.0
50
6000
4000
UCA
5500
Medgulf-1 Yr Performance
4500
0.0
140
Bupa (RHS)
5000
2.0
60
110
3500
4.0
6000
120
4000
6.0
150 130
4500
2000
90
Alrajhi Takaful-1 Yr Performance
6000
8.0
Lowest PB 110
Insurance Sector (LHS)
Insurance Sector (RHS)
10.0
Sagr Insurance
Tawuniya
Arabian Shield
Buruj
ATC
Top 5 Companies-Market Cap 35
12,000
30
10,000
25
8,000
20
In Mn SAR
6500
Lowest PE 12.0
6,000
5
3500
15
4,000
0
3000 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) WALAA (RHS)
10
2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
WALAA
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase -5.3%
Q1-2016
Q4-2016
Q1-2017
Q1-2016
Q4-2016
Q1-2017
Q1-2016
Q4-2016
Q1-2017
Bupa Arabia
2,446
1,086
2,253
-7.9%
107.4%
2,434
1,053
2,236
-8.1%
112.5%
1,882
1,982
1,876
-0.3%
Tawuniya
1,701
2,977
2,028
19.2%
-31.9%
1,581
2,690
1,885
19.2%
-29.9%
1,623
1,740
1,760
8.5%
1.2%
533
476
1,107
107.7%
132.7%
501
459
1,076
114.8%
134.3%
325
442
627
92.9%
41.8%
Al Rajihi Takaful MEDGULF
1,234
558
784
-36.4%
40.4%
1,075
458
687
-36.1%
50.0%
807
685
616
-23.7%
-10.1%
AXA-Cooperative
451
116
721
60.0%
523.8%
431
100
597
38.7%
495.3%
253
266
308
21.8%
15.8%
Saudi Re
447
7
456
2.2%
5986.2%
428
(0)
431
0.6%
NM*
251
131
146
-41.8%
NM*
1,186
197
448
-62.3%
126.9%
726
192
422
-41.9%
120.1%
347
376
203
-41.5%
-46.0%
SAICO
342
120
375
9.5%
212.8%
195
75
205
4.9%
172.7%
134
130
133
-1.0%
2.5%
Walaa
262
264
300
14.4%
13.6%
200
172
247
23.9%
43.9%
134
191
191
42.0%
-0.1%
Allianz SF
159
226
300
88.9%
32.3%
117
161
253
116.1%
57.0%
116
134
147
26.6%
10.1%
Wataniya
220
62
266
21.1%
331.8%
99
30
137
39.1%
352.4%
64
62
72
11.6%
15.3%
Arabian Shield
270
156
240
-11.2%
53.4%
158
104
149
-5.7%
43.1%
84
124
127
50.8%
2.4%
Wafa Insurance
200
97
233
16.6%
140.8%
171
82
152
-10.7%
86.1%
109
123
115
6.0%
-6.4%
Trade Union
303
157
229
-24.3%
46.4%
236
124
187
-20.6%
50.8%
175
197
185
5.3%
-6.3%
Salama
142
156
228
60.8%
46.0%
134
149
218
62.7%
46.4%
95
126
146
54.3%
16.4%
Buruj
126
102
177
40.1%
73.7%
116
93
166
43.1%
79.3%
99
99
105
6.4%
6.0%
Gulf Union
80
96
161
102.1%
67.4%
33
56
91
180.0%
63.0%
23
34
43
86.8%
26.9%
ATC
116
61
118
1.5%
94.3%
28
12
32
14.4%
157.2%
18
22
20
11.6%
-8.9%
AICC
132
91
112
-15.1%
23.1%
82
54
76
-6.9%
40.0%
97
77
69
-28.6%
-9.5%
UCA
348
147
109
-68.7%
-26.1%
154
54
20
-86.7%
-62.4%
189
110
58
-69.2%
-47.0%
Alinma Tokio M
164
42
104
-36.7%
147.2%
65
12
72
10.8%
476.5%
24
30
31
31.4%
4.1%
MetLife
55
60
103
87.9%
71.8%
41
50
88
112.2%
77.1%
29
37
47
61.8%
25.0%
Sagr Insurance
69
44
93
33.6%
110.1%
59
34
82
38.7%
137.3%
200
51
28
-86.2%
-46.0%
Al Alamiya
109
88
86
-20.8%
-1.6%
62
46
59
-5.0%
26.1%
61
41
33
-46.1%
-19.9%
Chubb Arabia
81
39
84
4.7%
116.5%
49
15
48
-1.0%
229.4%
28
30
24
-14.2%
-18.2%
ACIG
147
80
82
-44.5%
2.1%
130
66
67
-48.5%
2.0%
107
116
99
-7.3%
-14.1%
Gulf General
118
40
82
-30.5%
103.8%
61
21
40
-35.1%
91.2%
37
36
24
-34.6%
-34.4%
Enaya
31
40
49
58.2%
24.0%
19
44
48
156.5%
9.7%
12
20
30
154.8%
45.4%
SABB Takaful
46
63
47
2.1%
-25.2%
37
44
38
0.8%
-14.7%
43
37
27
-36.5%
-26.0%
Al Ahlia
54
28
46
-14.5%
65.6%
48
27
42
-13.5%
53.8%
60
42
34
-43.3%
-20.1%
Solidarity
98
69
36
-63.3%
-47.8%
88
60
31
-64.7%
-48.4%
61
58
50
-18.5%
-14.7%
Amana Insurance
71
33
23
-67.6%
-29.1%
49
12
9
-81.6%
-23.9%
87
31
18
-79.0%
-41.2%
Jazira Takaful
12
9
13
6.9%
46.0%
3
2
2
-19.6%
38.7%
6
6
7
17.5%
16.8%
11,753
7,787
11,494
-2.2%
47.6%
9,609
6,552
9,894
3.0%
51.0%
7,580
7,588
7,401
-2.4%
-2.5%
Malath Insurance
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 2 Gross Claims Paid Q1-2016
Q4-2016
YoY %Increase
QoQ %Increase
Q1-2017
Net Claims Paid Q1-2016
Q4-2016
YoY %Increase
QoQ %Increase
Q1-2017
Bupa Arabia
1,493
1,610
1,636
9.6%
1.6%
1,604
1,665
1,669
4.0%
0.3%
Tawuniya
1,324
1,406
1,432
8.2%
1.9%
1,268
1,300
1,408
11.1%
8.3% -4.6%
MEDGULF
881
715
663
-24.8%
-7.3%
674
594
567
-15.9%
Al Rajihi Takaful
248
343
435
75.2%
27.0%
271
381
541
99.4%
41.9%
Malath Insurance
428
624
327
-23.5%
-47.5%
292
460
200
-31.6%
-56.5%
AXA-Cooperative
190
220
227
19.3%
3.2%
207
218
253
21.9%
16.1%
Wafa Insurance
88
124
143
62.9%
14.9%
50
101
89
79.1%
-12.0% 21.9%
Allianz SF
122
129
134
10.1%
4.0%
82
92
112
37.2%
Trade Union
156
152
133
-14.6%
-12.7%
138
133
137
-1.0%
3.3%
Walaa
88
124
126
43.3%
1.6%
83
160
109
32.4%
-31.8%
UCA
246
150
114
-53.8%
-24.3%
153
70
4
-97.1%
-93.7%
Salama
72
81
103
43.3%
27.6%
76
91
105
38.2%
14.5%
SAICO
139
91
96
-30.9%
6.0%
104
86
90
-13.3%
5.4%
Arabian Shield
98
155
93
-4.8%
-39.9%
67
70
89
33.1%
28.0%
Alinma Tokio M
43
69
90
109.9%
29.9%
19
25
18
-3.4%
-26.7%
ACIG
90
103
88
-3.0%
-14.8%
84
99
72
-14.7%
-27.6%
AICC
121
63
64
-47.4%
1.1%
68
51
41
-39.9%
-19.3%
Saudi Re
102
95
64
-37.4%
-32.9%
214
49
107
-50.1%
117.7%
Wataniya
61
93
61
0.9%
-34.0%
45
25
42
-7.7%
65.3%
Buruj
57
47
51
-10.0%
9.3%
64
29
64
0.0%
118.9% -33.7%
Sagr Insurance
58
82
49
-15.6%
-39.8%
86
27
18
-79.4%
MetLife
22
31
47
117.8%
50.9%
22
33
38
76.1%
14.2%
Amana Insurance
53
34
42
-20.4%
23.1%
52
8
16
-68.7%
116.4%
Gulf Union
28
28
40
42.7%
43.7%
15
16
26
75.8%
63.9%
Solidarity
41
29
34
-16.1%
18.1%
29
23
22
-23.8%
-6.5%
Gulf General
44
43
29
-34.5%
-32.7%
23
26
14
-39.5%
-46.8%
Al Ahlia
50
29
27
-45.5%
-7.4%
50
32
21
-58.4%
-35.5%
Enaya
14
15
19
37.7%
24.9%
10
9
20
94.7%
108.0%
ATC
17
52
16
-2.0%
-68.8%
3
7
5
59.7%
-28.0%
Al Alamiya
73
44
15
-79.8%
-66.1%
30
22
7
-76.0%
-68.0%
Chubb Arabia
67
33
12.65
-81.2%
-61.4%
17
17
9
-48.0%
-47.9%
SABB Takaful
8
13
11
42.9%
-17.4%
3
4
4
25.1%
-9.8%
Jazira Takaful
2
3
7
327.4%
141.9%
1
(0)
1
-31.9%
-266.3%
6,521
6,829
6,428
-1.4%
-5.9%
5,905
5,924
5,918
0.2%
Total
-0.1% Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q1-2016
Q4-2016
Q1-2017
QoQ %Increase
Net Income
YoY %Increase
Q1-2016
Q4-2016
Q1-2017
QoQ %Increase
MetLife
(3.7)
(6.4)
(6.9)
86.7%
7.7%
(3.7)
(6.6)
(7.4)
98.0%
11.5%
Jazira Takaful
5.7
7.5
7.3
27.3%
-3.4%
5.4
7.5
7.0
29.6%
-6.0%
Tawuniya
61.5
212.3
160.3
160.5%
-24.5%
47.2
191.3
142.6
202.1%
-25.5%
Malath Insurance
2.9
(24.7)
8.9
209.8%
-135.8%
0.7
(25.4)
7.4
901.5%
-129.0% -1158.1%
MEDGULF
13.8
12.0
(93.0)
-775.6%
-875.7%
9.5
9.0
(94.9)
-1099.9%
Allianz SF
6.8
5.1
8.8
30.4%
73.9%
5.3
3.7
7.2
35.4%
91.9%
Salama
2.5
16.1
14.2
467.5%
-11.9%
1.2
10.8
12.9
935.8%
19.8%
Walaa Insurance
20.4
26.3
32.2
57.9%
22.4%
18.4
23.3
29.0
57.4%
24.3%
Arabian Shield
7.4
44.7
20.7
178.3%
-53.8%
5.3
41.4
17.3
229.1%
-58.2%
SABB Takaful
3.8
2.5
2.1
-43.8%
-15.9%
2.2
1.1
0.8
-66.2%
-33.6%
SAICO
1.7
17.5
9.4
464.2%
-46.4%
0.3
15.2
7.8
2548.0%
-48.3%
Wafa Insurance
36.5
10.1
3.6
-90.0%
-63.7%
36.2
5.7
3.3
-90.7%
-41.1%
Gulf Union
1.4
17.4
6.6
362.1%
-62.1%
0.9
16.7
5.8
550.0%
-65.3%
ATC
7.7
9.3
9.4
22.3%
0.9%
6.3
7.8
7.9
24.0%
0.3%
Al Ahlia
(8.2)
0.8
0.7
-108.6%
-9.8%
(8.6)
0.1
0.2
-102.6%
50.7% -195.7%
ACIG
3.8
(4.5)
4.9
29.7%
-207.9%
3.5
(4.7)
4.5
27.5%
AICC
3.2
4.8
5.2
60.2%
7.1%
2.7
4.3
3.8
39.5%
-12.1%
Trade Union
1.4
10.3
8.1
478.7%
-21.3%
(1.6)
8.8
5.6
-447.2%
-36.3%
Solidarity
3.5
16.5
10.6
206.6%
-35.6%
2.9
14.5
9.4
224.3%
-35.3%
Wataniya
6.3
20.1
15.7
148.5%
-22.0%
5.8
19.3
14.9
156.2%
-23.0% -130.1%
Amana Insurance
8.2
15.7
(4.6)
-155.7%
-129.2%
5.6
15.2
(4.6)
-182.6%
AXA-Cooperative
13.2
8.7
16.3
22.9%
86.8%
10.0
6.0
12.5
24.8%
108.6%
Gulf General
(3.9)
10.2
(0.3)
-91.7%
-103.2%
(5.1)
9.8
(1.7)
-66.2%
-117.5% -44.0%
Buruj
12.0
47.8
28.0
133.9%
-41.5%
10.2
45.0
25.2
147.1%
Al Alamiya
15.7
4.9
16.5
5.1%
235.2%
13.4
3.2
14.1
4.9%
334.1%
Saudi Re
(17.7)
42.4
7.5
-142.3%
-82.3%
(20.7)
37.1
3.9
-118.7%
-89.6%
UCA
19.2
11.3
34.2
77.8%
203.4%
18.2
10.3
32.7
79.4%
218.4%
Bupa Arabia
72.6
193.5
36.7
-49.5%
-81.0%
55.3
105.3
17.9
-67.6%
-83.0%
Sagr Insurance
72.6
9.3
5.1
-93.0%
-45.1%
68.4
6.0
1.3
-98.1%
-78.8%
Chubb Arabia
2.2
13.9
9.1
312.1%
-34.0%
1.2
11.4
7.9
563.2%
-30.8%
Enaya
(9.6)
(4.5)
(6.6)
-31.5%
46.3%
(11.1)
(4.9)
(7.3)
-34.4%
48.7%
Al Rajihi Takaful
8.8
36.3
34.1
289.6%
-5.9%
7.6
32.3
31.4
315.1%
-2.8%
Alinma Tokio M Total
(7.4)
1.9
1.5
-119.6%
-24.5%
(7.4)
(0.8)
0.5
-106.7%
-161.8%
364.2
789.0
406.3
11.6%
-48.5%
285.5
619.9
318.8
11.7%
-48.6%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,580.00
12.9
4.4
4.3%
METLIFE AIG ANB
674.45
NM*
2.9
-
Jazira Takaful
924.00
33.6
2.4
-
MALATH INSURANCE
216.24
NM*
2.2
-
MEDGULF
1,616.00
NM*
1.9
-
Allianz SF
704.80
26.6
3.1
-
Salama
425.50
12.4
2.1
-
WALAA
1,067.60
8.3
2.3
-
Arabian Shield
973.00
10.3
3.0
4.1%
SABB Takaful
831.30
81.4
2.3
-
SAICO
481.00
8.0
1.6
-
WAFA Insurance
268.35
10.0
2.2
-
Gulf Union
263.10
8.7
1.7
-
ATC
534.98
15.3
2.4
1.6%
Al-Ahlia
167.68
NM*
1.6
-
ACIG
245.40
25.9
1.9
-
AICC
377.10
36.3
1.5
-
Trade Union
462.00
8.9
1.5
-
Sagr Insurance
719.25
8.2
1.4
7.0%
UCA
662.48
5.8
1.6
-
Saudi Re
637.00
14.6
0.8
-
Bupa Arabia
8,944.00
15.0
4.4
1.3%
AlRajhi Takaful
1,965.20
17.1
4.3
-
469.00
10.6
2.0
-
1,007.55
22.0
2.0
-
Gulf General
288.40
11.9
1.5
-
Buruj
698.50
6.9
2.0
1.8%
Al Alamiya
999.20
21.2
2.9
-
Solidarity
391.00
7.4
1.5
-
Wataniya
519.80
10.8
2.6
-
Amana Insurance
231.28
22.1
2.0
-
Enaya
290.80
NM*
1.8
-
Alinma Tokio M
700.20
NM*
2.4
-
40,336.16
13.2
2.8
-
Tawuniya
CHUBB AXA Cooperative
Insurance Sector
Source: Argaam, *NM: Not meaningfull, prices as of 13 of June 2017
RESEARCH DIVISION
Acting 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 Investment
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
& sales
brokerage
Centers & ADC
Central Region
Abdullah Al-Rahit
Alaa Al-Yousef
Luay Jawad Al-Motawa
Brokerage
Sultan Ibrahim AL-Mutawa
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
Abdullah Q. Al-Misbani
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
+966 12 6618400 [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
June 2017
Sector report | KSA | 1st Quarter 2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q1-2017
June 2017
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 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
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017 Gross Written Premium
8000
NPE (Net Premium Earned) in Q1-2017 at SAR 7.4bn showed a fall of 2.4%YoY.
4000
12.2%
19.3%
26.7%
22.6%
22.7%
NPE-Sector Wise
10%
Q1 - 2017
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q1 - 2015
Q2 - 2015
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q1 - 2016
Q3 - 2016
Q4 - 2016
Q1 - 2017
2.2% -2.4%
Q2 - 2016
6.8%
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
24.8% 19.9%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
-0.5%
-4.5% Others
-6.5%
AXA
0.8%
-2.0%
-1.2%
Trade Union
1.3%
Bupa Arabia
MEDGULF
UCA
2.4%
MEDGULF
3.2%
Malath
5.1%
3.5%
-2.5%
AXA Cooperative
27.2% 26.1% 23.8%
% Growth (YoY) - RHS
Salama
5.5%
Tawuniya
18%
20.9%
Allianz SF
Tawuniya
1.5% Al Rajihi Takaful
16.9%
25.1%
Q1 - 2015
17.8%
32.1%
Q4 - 2014
20.4%
27.3%
24.4%
Top 5 Gainers and Losers- GWP market Share
40%
7%
Retention Ratio - RHS
Q3 - 2014
-
17.5%
23.9%
Q2 - 2014
13.4%
26.9%
Q1 - 2014
19.4%
NPE
Gross Written Premium- Market Share Bupa Arabia
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
Q4 - 2013
Others
6%
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Premium Ceded - LHS
Q3 - 2013
Protection and Saving
59%
Others
Jazira Chubb Gulf Takaful Arabia General
0
Q2 - 2013
35%
Accident and Liability
UCA
2,000
Q1 - 2013
Motor
20%
Bupa Al Rajihi Salama Saudi Al Ahlia ATC Arabia Takaful Re
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
4,000
Q4 - 2012
Health
1%
Accident and Liability
Top 5 and Bottom 5- Retention Ratio
% Growth (YoY) - RHS
6,000
Q3 - 2012
38%
Property/ Fire
-2.1%
Net Premium Earned
3%
Motor 46%
-9.6%
8,000
Q2 - 2012
2%
2.0%
15.5%
10,000
Q1 - 2012
Health
8%
24.6% 16.7%
32.0% 28.0% 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% -4.0% -8.0% -12.0%
-2.2%
Premium Ceded-Industry
Al Rajihi Takaful
GWP-Sector WIse
11.9%
12,000
Q2 - 2012
Retention Ratio: Industry retention ratio stood at 86.0% in 1Q-2017, as compared to 81.7% in 1Q-2016. BUPA Arabia has the highest retention ratio of 99% in 1Q-2017. AlRajhi Takaful at 96.4% had the second highest retention ratio
21.5%
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
0
Q1 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 4.5% in 1Q-2016 to 9.6% in 1Q2017 an improvement of 510bps , followed by Tawuniya which showed an improvement of 320bps.
100% 90% 80% 70% 60% 50% 40% 30% d Liability 20% 10% 0%
18.3%
24.2%
GWP - LHS
BUPA Arabia with 20% market share in GWP was the biggest player, followed by Tawuniya at 18%.
2%
14.5%
30.2%
2000
Market Share
6%
8.0%
Q3 - 2012
Health Sector accounted for 46% of the total GWP, followed by Motor which accounted for 38% of GWP
6000
9.0%
20.4%
Q4 - 2016
NWP (Net Written Premiums) in Q1-2017 stood at SAR 9.9bn, depicting a jump of 3.0%YoY.
Q2 - 2012
10000
Q3 - 2016
12000
Q1 - 2012
GWP (Gross Written Premiums) in Q1-2017 stood at SAR 11.5bn depicting a fall of 2.2% YoY.
-0.6%
-3.7% -6.2%
Source: Argaam, SAMA
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017 Gross Claims Paid 7,500
30% 24%
6,000 4,500 3,000
6,000
34%
15%
7%
10% 5%
-1%
0%
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2014
24%
23%
17%
21%
% Growth (YoY) - RHS 29%
17%
35% 30% 25%
19%
20% 15%
7%
2,000
-2%
1,000
10%
0.2%
5% 0%
Q1 - 2017
Q4 - 2016
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-5%
Loss Ratio
Jazira Takaful
Chubb Arabia
SABB Takaful
Al Alamiya
ATC
Enaya
Al Ahlia
Solidarity
Gulf General
Q1 - 2017
Gulf Union
MetLife
Amana Insurance
Sagr Insurance
Buruj
Wataniya
Saudi Re
AICC
ACIG
Alinma Tokio M
SAICO
Arabian Shield
Salama
UCA
Walaa
Trade Union
Allianz SF
Wafa Insurance
Q1 - 2016
AXA
1800 1600 1400 1200 1000 800 600 400 200 0
Others
Combined Ratio
120%
Q1 - 2016
100%
180%
Q1 - 2017
Q1 - 2016
130%
80% 60%
Q1 - 2017
80%
40% 20%
Jazira Takaful
ATC
Al Alamiya
UCA
Solidarity
Chubb Arabia
Buruj
Walaa Insurance
Salama
Tawuniya
Arabian Shield
Al Rajihi Takaful
Trade Union
AICC
ACIG
AXA - Coop
Allianz SF
Bupa Arabia
Wafa Insurance
Al Ahlia
Sagr Insurance
SABB Takaful
SAICO
Saudi Re
Wataniya
Gulf Union
Alinma Tokio M
MEDGULF
Enaya
MetLife
Malath Insurance
Gulf General
- 20%
Amana Insurance
Jazira Takaful
ATC
SABB Takaful
Solidarity
Al Alamiya
Chubb Arabia
Buruj
Sagr Insurance
Enaya
Gulf Union
Gulf General
UCA
Wataniya
AICC
Walaa
SAICO
Arabian Shield
Al Ahlia
Amana Insurance
Salama
Alinma Tokio M
Tawuniya
Allianz SF
ACIG
Trade Union
Saudi Re
Wafa Insurance
AXA
Bupa Arabia
Al Rajihi Takaful
MetLife
MEDGULF
30%
Malath Insurance
0%
20%
9%
3,000
Property/ Fire
Others
10%
25% 13%
Net Claims Paid - LHS
25% 17%
Al Rajihi Takaful
62%
22%
7%
29%
5,000
Malath Insurance
5%
32%
24%
MEDGULF
AXA - Coop
24%
Tawuniya
Malath
Protection and Saving
4%
Q2 - 2013
Q1 - 2012 7,000
Health
33%
30%
Net Claims Paid
IN MN SAR
Al Rajihi Takaful
24%
Claims Paid-Company wise
Motor MEDGULF
18%
35%
% Growth (YoY) - RHS
28%
-5%
Q1 - 2012 25%
%27
2% 2%
Tawuniya
23%
-3%
Bupa Arabia
Bupa Arabia
Claims Market Share-sector wise Others
Gross Claims Paid - LHS
9%
4,000
Amana Insurance had the highest combined ratio of 148%, whereas Aljazira Takaful had the lowest combined ratio of 48%.
Claims Market Share-Company wise Others
17%
Q3 - 2014
Aljazira Takaful had the lowest loss ratio of 9.4%.
19%
Q2 - 2014
Malath insurance had the highest loss ratio of 120% in Q1-2017, followed by Metlife at 86% in Q1-2017.
31%
24%
1,500
Aljazira Takaful paid the lowest claims of SAR 7.0mn. Health sector accounted for the highest share in claims at 62% , followed by Motor sector at 33%.
25%
9%
Q3 - 2012
BUPA Arabia with 20% market share in GWP paid the highest claims of SAR 1.5bn, showing a market share of 25%, followed by Tawuniya at 22%.
27%
17%
Q2 - 2012
Market Share
22%
Q4 - 2012
NCP (Net Claim Paid) in Q1-2017 stood at SAR 5.9bn, depicting a jump of 0.2%YoY.
Q1 - 2013
GCP (Gross Claims Paid) in Q1-2017 stood at SAR 6.4bn depicting a fall of 1.4% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
803
700 300
340
125
179
19
(100)
(49)
SAGR Insurance showed the highest Operating and net margins at 5.3% and 42.3%, respectively.
100
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
Amana Insurance
Enaya
MetLife
MEDGULF
Amana Insurance
Enaya
MetLife
MEDGULF
Alinma Tokio M
SABB Takaful
Alinma Tokio M
Gulf General
SABB Takaful
Al Ahlia
Al Ahlia Sagr Insurance
Alinma Tokio M
Salama
Chubb Arabia
Gulf General
Wafa Insurance
Wafa Insurance
Enaya
Saudi Re
AICC
Saudi Re
ACIG
Sagr Insurance
UCA
ACIG
Gulf Union
Trade Union
Jazira Takaful
Allianz SF
Malath Insurance
SAICO
ATC
Chubb Arabia
Solidarity
Salama
AXA - Cooperative
Al Alamiya
Wataniya
Arabian Shield
Buruj
Bupa Arabia
Gulf Union
Jazira Takaful
AICC
Arabian Shield
Amana Insurance
SAICO
Allianz SF
Walaa Insurance
ATC
Allianz SF
ACIG
Chubb Arabia
Al Ahlia
MetLife
Solidarity
Malath Insurance
ATC
Trade Union
AXA - Cooperative
Salama
Wataniya
Al Alamiya
Buruj
Arabian Shield
Bupa Arabia
Al Rajihi Takaful
Trade Union
Gulf General
Wafa Insurance
Malath Insurance
AICC
Gulf Union
Al Alamiya
MEDGULF
Solidarity
Sagr Insurance
Buruj
SAICO
SABB Takaful
Cooperative AXA -
Jazira Takaful
Solidarity
Bupa Arabia
8.0% 10.0%
Saudi Re
6.0%
Sagr Insurance
4.0%
Arabian Shield
In Mn SAR
Enaya
Malath Insurance
MetLife
0.0%
Walaa
2.0%
Al Ahlia
Alinma Tokio M
4.0%
Buruj
Malath
Sanad
Enaya
Al Ahlia
MetLife UCA
Walaa
Buruj
Tawuniya
Wataniya
6.0%
45 40 35 30 25 20 15 10 5 0
Tawuniya
Investment Income
Others
8.0%
2.0%
UCA
Gulf Union
Walaa Insurance
Chubb Arabian Walaa Gulf ATC Arabia Shield General
10.0%
20.0%
-100.0%
Jazira Solidarity Buruj Takaful
ROA-Top 5/ Bottom 5
Others
40.0%
0.0%
-100
Sagr
Al Rajihi Takaful
ROE-Top 5 /Bottom 5
0.0%
0
-50
1.0% Sagr Jazira Solidarity Buruj Chubb Amana Arabian Walaa ATC Gulf Union Takaful Arabia Shield
50
Tawuniya
In Mn SAR
20.0%
2.0%
-80.0%
11.7% YoY -48.6% QoQ
100
3.0%
-60.0%
(31)
319
150
40.0%
4.0%
620
Surplus From Insurance Operations
Others
5.0%
-40.0%
122
Wataniya
Net Margins-Highest 10 60.0%
Walaa Insurance
UCA
-100
Al Rajihi Takaful
Tawuniya
0 -50
-20.0%
285
432
150
Buruj Co-Operative posted the highest ROA of 9.9%.
0.0%
240
233
50
Wataniya posted the highest ROE of 34.8%
Others
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Net Income-Company wise
Operating Margins-Highest 10
491
(1,159)
AlRajhi Takaful showed the highest investment income of SAR 39.3mn in the sector, registering growth of 37.6%YoY and a fall of 29.6%QoQ.
6.0%
405
(41)
(117)
(900) (1,300)
199
3
(500)
Q2 - 2012
Tawuniya showed the highest surplus, from its insurance operations , at SAR 136.6mn, depicting a jump of 103.6% and a fall of 29.5%
1,100
Q1 - 2012
Tawuniya with net income of SAR 142.6mn contributed 44.7% to the sector’s income, depicting a jump of 202%YoY, a 25.5%QoQ fall.
Net Income
In MN SAR
Net income for the sector stood at SAR 318.8mn in 1Q-2017, as compared to SAR 285.5mn in 1Q-2016, depicting a jump of 11.7%. On a QoQ basis net income showed a decline of 48.5%.
Source: Argaam
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
United Cooperative Assurance had the lowest PE of 5.8x, followed by Buruj Cooperative insurance with a PE of 6.9x. 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 7.0% followed by Tawuniya with a dividend yield of 4.3%
Tawuniya-1 Yr Performance
Tadawul Insurance Index- 1 Yr Performance 7500
6000
6000
7000
5500
5500
5000
5000
4500
4500
4000
4000
5500
3500
3500
5000
3000
3000
6000
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 TASI (LHS)
BUPA-1 Yr Performance 5500 5000
3000 2500 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS)
70
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017
50
3500 3000 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) Medgulf (RHS)
0.2 0.0
Saudi Re Insurance
Tawuniya (RHS)
90
3500
10
3000
0
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) Alrajhi takaful (RHS)
10
4500 4000
Gulf
Trade Union
AICC
Solidarity
UCA
SAICO
Al -Ahlia
Gulf Union
7.0%
6.0% 5.0%
4.3%
4.0%
4.1%
3.0% 1.8%
2.0%
1.6%
1.0% 0.0%
Walaa-1 Yr Performance
5000
Sagr
Highest Dividend Yield
20
15
Arabian Shield
0.4
4000
20
WAFA Insurance
0.6
100
25
Trade Union
0.8
30
5500
Gulf Union
1.0
4500
30
WALAA
1.2
40
5500
Sagr Insurance
1.4
5000
6000
SAICO
1.6
7.0%
35
Solidarity
1.8
8.0%
80
Buruj
2.0
50
6000
4000
UCA
5500
Medgulf-1 Yr Performance
4500
0.0
140
Bupa (RHS)
5000
2.0
60
110
3500
4.0
6000
120
4000
6.0
150 130
4500
2000
90
Alrajhi Takaful-1 Yr Performance
6000
8.0
Lowest PB 110
Insurance Sector (LHS)
Insurance Sector (RHS)
10.0
Sagr Insurance
Tawuniya
Arabian Shield
Buruj
ATC
Top 5 Companies-Market Cap 35
12,000
30
10,000
25
8,000
20
In Mn SAR
6500
Lowest PE 12.0
6,000
5
3500
15
4,000
0
3000 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 Insurance Sector (LHS) WALAA (RHS)
10
2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
WALAA
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase -5.3%
Q1-2016
Q4-2016
Q1-2017
Q1-2016
Q4-2016
Q1-2017
Q1-2016
Q4-2016
Q1-2017
Bupa Arabia
2,446
1,086
2,253
-7.9%
107.4%
2,434
1,053
2,236
-8.1%
112.5%
1,882
1,982
1,876
-0.3%
Tawuniya
1,701
2,977
2,028
19.2%
-31.9%
1,581
2,690
1,885
19.2%
-29.9%
1,623
1,740
1,760
8.5%
1.2%
533
476
1,107
107.7%
132.7%
501
459
1,076
114.8%
134.3%
325
442
627
92.9%
41.8%
Al Rajihi Takaful MEDGULF
1,234
558
784
-36.4%
40.4%
1,075
458
687
-36.1%
50.0%
807
685
616
-23.7%
-10.1%
AXA-Cooperative
451
116
721
60.0%
523.8%
431
100
597
38.7%
495.3%
253
266
308
21.8%
15.8%
Saudi Re
447
7
456
2.2%
5986.2%
428
(0)
431
0.6%
NM*
251
131
146
-41.8%
NM*
1,186
197
448
-62.3%
126.9%
726
192
422
-41.9%
120.1%
347
376
203
-41.5%
-46.0%
SAICO
342
120
375
9.5%
212.8%
195
75
205
4.9%
172.7%
134
130
133
-1.0%
2.5%
Walaa
262
264
300
14.4%
13.6%
200
172
247
23.9%
43.9%
134
191
191
42.0%
-0.1%
Allianz SF
159
226
300
88.9%
32.3%
117
161
253
116.1%
57.0%
116
134
147
26.6%
10.1%
Wataniya
220
62
266
21.1%
331.8%
99
30
137
39.1%
352.4%
64
62
72
11.6%
15.3%
Arabian Shield
270
156
240
-11.2%
53.4%
158
104
149
-5.7%
43.1%
84
124
127
50.8%
2.4%
Wafa Insurance
200
97
233
16.6%
140.8%
171
82
152
-10.7%
86.1%
109
123
115
6.0%
-6.4%
Trade Union
303
157
229
-24.3%
46.4%
236
124
187
-20.6%
50.8%
175
197
185
5.3%
-6.3%
Salama
142
156
228
60.8%
46.0%
134
149
218
62.7%
46.4%
95
126
146
54.3%
16.4%
Buruj
126
102
177
40.1%
73.7%
116
93
166
43.1%
79.3%
99
99
105
6.4%
6.0%
Gulf Union
80
96
161
102.1%
67.4%
33
56
91
180.0%
63.0%
23
34
43
86.8%
26.9%
ATC
116
61
118
1.5%
94.3%
28
12
32
14.4%
157.2%
18
22
20
11.6%
-8.9%
AICC
132
91
112
-15.1%
23.1%
82
54
76
-6.9%
40.0%
97
77
69
-28.6%
-9.5%
UCA
348
147
109
-68.7%
-26.1%
154
54
20
-86.7%
-62.4%
189
110
58
-69.2%
-47.0%
Alinma Tokio M
164
42
104
-36.7%
147.2%
65
12
72
10.8%
476.5%
24
30
31
31.4%
4.1%
MetLife
55
60
103
87.9%
71.8%
41
50
88
112.2%
77.1%
29
37
47
61.8%
25.0%
Sagr Insurance
69
44
93
33.6%
110.1%
59
34
82
38.7%
137.3%
200
51
28
-86.2%
-46.0%
Al Alamiya
109
88
86
-20.8%
-1.6%
62
46
59
-5.0%
26.1%
61
41
33
-46.1%
-19.9%
Chubb Arabia
81
39
84
4.7%
116.5%
49
15
48
-1.0%
229.4%
28
30
24
-14.2%
-18.2%
ACIG
147
80
82
-44.5%
2.1%
130
66
67
-48.5%
2.0%
107
116
99
-7.3%
-14.1%
Gulf General
118
40
82
-30.5%
103.8%
61
21
40
-35.1%
91.2%
37
36
24
-34.6%
-34.4%
Enaya
31
40
49
58.2%
24.0%
19
44
48
156.5%
9.7%
12
20
30
154.8%
45.4%
SABB Takaful
46
63
47
2.1%
-25.2%
37
44
38
0.8%
-14.7%
43
37
27
-36.5%
-26.0%
Al Ahlia
54
28
46
-14.5%
65.6%
48
27
42
-13.5%
53.8%
60
42
34
-43.3%
-20.1%
Solidarity
98
69
36
-63.3%
-47.8%
88
60
31
-64.7%
-48.4%
61
58
50
-18.5%
-14.7%
Amana Insurance
71
33
23
-67.6%
-29.1%
49
12
9
-81.6%
-23.9%
87
31
18
-79.0%
-41.2%
Jazira Takaful
12
9
13
6.9%
46.0%
3
2
2
-19.6%
38.7%
6
6
7
17.5%
16.8%
11,753
7,787
11,494
-2.2%
47.6%
9,609
6,552
9,894
3.0%
51.0%
7,580
7,588
7,401
-2.4%
-2.5%
Malath Insurance
Total
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 2 Gross Claims Paid Q1-2016
Q4-2016
YoY %Increase
QoQ %Increase
Q1-2017
Net Claims Paid Q1-2016
Q4-2016
YoY %Increase
QoQ %Increase
Q1-2017
Bupa Arabia
1,493
1,610
1,636
9.6%
1.6%
1,604
1,665
1,669
4.0%
0.3%
Tawuniya
1,324
1,406
1,432
8.2%
1.9%
1,268
1,300
1,408
11.1%
8.3% -4.6%
MEDGULF
881
715
663
-24.8%
-7.3%
674
594
567
-15.9%
Al Rajihi Takaful
248
343
435
75.2%
27.0%
271
381
541
99.4%
41.9%
Malath Insurance
428
624
327
-23.5%
-47.5%
292
460
200
-31.6%
-56.5%
AXA-Cooperative
190
220
227
19.3%
3.2%
207
218
253
21.9%
16.1%
Wafa Insurance
88
124
143
62.9%
14.9%
50
101
89
79.1%
-12.0% 21.9%
Allianz SF
122
129
134
10.1%
4.0%
82
92
112
37.2%
Trade Union
156
152
133
-14.6%
-12.7%
138
133
137
-1.0%
3.3%
Walaa
88
124
126
43.3%
1.6%
83
160
109
32.4%
-31.8%
UCA
246
150
114
-53.8%
-24.3%
153
70
4
-97.1%
-93.7%
Salama
72
81
103
43.3%
27.6%
76
91
105
38.2%
14.5%
SAICO
139
91
96
-30.9%
6.0%
104
86
90
-13.3%
5.4%
Arabian Shield
98
155
93
-4.8%
-39.9%
67
70
89
33.1%
28.0%
Alinma Tokio M
43
69
90
109.9%
29.9%
19
25
18
-3.4%
-26.7%
ACIG
90
103
88
-3.0%
-14.8%
84
99
72
-14.7%
-27.6%
AICC
121
63
64
-47.4%
1.1%
68
51
41
-39.9%
-19.3%
Saudi Re
102
95
64
-37.4%
-32.9%
214
49
107
-50.1%
117.7%
Wataniya
61
93
61
0.9%
-34.0%
45
25
42
-7.7%
65.3%
Buruj
57
47
51
-10.0%
9.3%
64
29
64
0.0%
118.9% -33.7%
Sagr Insurance
58
82
49
-15.6%
-39.8%
86
27
18
-79.4%
MetLife
22
31
47
117.8%
50.9%
22
33
38
76.1%
14.2%
Amana Insurance
53
34
42
-20.4%
23.1%
52
8
16
-68.7%
116.4%
Gulf Union
28
28
40
42.7%
43.7%
15
16
26
75.8%
63.9%
Solidarity
41
29
34
-16.1%
18.1%
29
23
22
-23.8%
-6.5%
Gulf General
44
43
29
-34.5%
-32.7%
23
26
14
-39.5%
-46.8%
Al Ahlia
50
29
27
-45.5%
-7.4%
50
32
21
-58.4%
-35.5%
Enaya
14
15
19
37.7%
24.9%
10
9
20
94.7%
108.0%
ATC
17
52
16
-2.0%
-68.8%
3
7
5
59.7%
-28.0%
Al Alamiya
73
44
15
-79.8%
-66.1%
30
22
7
-76.0%
-68.0%
Chubb Arabia
67
33
12.65
-81.2%
-61.4%
17
17
9
-48.0%
-47.9%
SABB Takaful
8
13
11
42.9%
-17.4%
3
4
4
25.1%
-9.8%
Jazira Takaful
2
3
7
327.4%
141.9%
1
(0)
1
-31.9%
-266.3%
6,521
6,829
6,428
-1.4%
-5.9%
5,905
5,924
5,918
0.2%
Total
-0.1% Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q1-2016
Q4-2016
Q1-2017
QoQ %Increase
Net Income
YoY %Increase
Q1-2016
Q4-2016
Q1-2017
QoQ %Increase
MetLife
(3.7)
(6.4)
(6.9)
86.7%
7.7%
(3.7)
(6.6)
(7.4)
98.0%
11.5%
Jazira Takaful
5.7
7.5
7.3
27.3%
-3.4%
5.4
7.5
7.0
29.6%
-6.0%
Tawuniya
61.5
212.3
160.3
160.5%
-24.5%
47.2
191.3
142.6
202.1%
-25.5%
Malath Insurance
2.9
(24.7)
8.9
209.8%
-135.8%
0.7
(25.4)
7.4
901.5%
-129.0% -1158.1%
MEDGULF
13.8
12.0
(93.0)
-775.6%
-875.7%
9.5
9.0
(94.9)
-1099.9%
Allianz SF
6.8
5.1
8.8
30.4%
73.9%
5.3
3.7
7.2
35.4%
91.9%
Salama
2.5
16.1
14.2
467.5%
-11.9%
1.2
10.8
12.9
935.8%
19.8%
Walaa Insurance
20.4
26.3
32.2
57.9%
22.4%
18.4
23.3
29.0
57.4%
24.3%
Arabian Shield
7.4
44.7
20.7
178.3%
-53.8%
5.3
41.4
17.3
229.1%
-58.2%
SABB Takaful
3.8
2.5
2.1
-43.8%
-15.9%
2.2
1.1
0.8
-66.2%
-33.6%
SAICO
1.7
17.5
9.4
464.2%
-46.4%
0.3
15.2
7.8
2548.0%
-48.3%
Wafa Insurance
36.5
10.1
3.6
-90.0%
-63.7%
36.2
5.7
3.3
-90.7%
-41.1%
Gulf Union
1.4
17.4
6.6
362.1%
-62.1%
0.9
16.7
5.8
550.0%
-65.3%
ATC
7.7
9.3
9.4
22.3%
0.9%
6.3
7.8
7.9
24.0%
0.3%
Al Ahlia
(8.2)
0.8
0.7
-108.6%
-9.8%
(8.6)
0.1
0.2
-102.6%
50.7% -195.7%
ACIG
3.8
(4.5)
4.9
29.7%
-207.9%
3.5
(4.7)
4.5
27.5%
AICC
3.2
4.8
5.2
60.2%
7.1%
2.7
4.3
3.8
39.5%
-12.1%
Trade Union
1.4
10.3
8.1
478.7%
-21.3%
(1.6)
8.8
5.6
-447.2%
-36.3%
Solidarity
3.5
16.5
10.6
206.6%
-35.6%
2.9
14.5
9.4
224.3%
-35.3%
Wataniya
6.3
20.1
15.7
148.5%
-22.0%
5.8
19.3
14.9
156.2%
-23.0% -130.1%
Amana Insurance
8.2
15.7
(4.6)
-155.7%
-129.2%
5.6
15.2
(4.6)
-182.6%
AXA-Cooperative
13.2
8.7
16.3
22.9%
86.8%
10.0
6.0
12.5
24.8%
108.6%
Gulf General
(3.9)
10.2
(0.3)
-91.7%
-103.2%
(5.1)
9.8
(1.7)
-66.2%
-117.5% -44.0%
Buruj
12.0
47.8
28.0
133.9%
-41.5%
10.2
45.0
25.2
147.1%
Al Alamiya
15.7
4.9
16.5
5.1%
235.2%
13.4
3.2
14.1
4.9%
334.1%
Saudi Re
(17.7)
42.4
7.5
-142.3%
-82.3%
(20.7)
37.1
3.9
-118.7%
-89.6%
UCA
19.2
11.3
34.2
77.8%
203.4%
18.2
10.3
32.7
79.4%
218.4%
Bupa Arabia
72.6
193.5
36.7
-49.5%
-81.0%
55.3
105.3
17.9
-67.6%
-83.0%
Sagr Insurance
72.6
9.3
5.1
-93.0%
-45.1%
68.4
6.0
1.3
-98.1%
-78.8%
Chubb Arabia
2.2
13.9
9.1
312.1%
-34.0%
1.2
11.4
7.9
563.2%
-30.8%
Enaya
(9.6)
(4.5)
(6.6)
-31.5%
46.3%
(11.1)
(4.9)
(7.3)
-34.4%
48.7%
Al Rajihi Takaful
8.8
36.3
34.1
289.6%
-5.9%
7.6
32.3
31.4
315.1%
-2.8%
Alinma Tokio M Total
(7.4)
1.9
1.5
-119.6%
-24.5%
(7.4)
(0.8)
0.5
-106.7%
-161.8%
364.2
789.0
406.3
11.6%
-48.5%
285.5
619.9
318.8
11.7%
-48.6%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
June 2017 Please read Disclaimer on the back
Sector report | KSA | 1st Quarter 2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,580.00
12.9
4.4
4.3%
METLIFE AIG ANB
674.45
NM*
2.9
-
Jazira Takaful
924.00
33.6
2.4
-
MALATH INSURANCE
216.24
NM*
2.2
-
MEDGULF
1,616.00
NM*
1.9
-
Allianz SF
704.80
26.6
3.1
-
Salama
425.50
12.4
2.1
-
WALAA
1,067.60
8.3
2.3
-
Arabian Shield
973.00
10.3
3.0
4.1%
SABB Takaful
831.30
81.4
2.3
-
SAICO
481.00
8.0
1.6
-
WAFA Insurance
268.35
10.0
2.2
-
Gulf Union
263.10
8.7
1.7
-
ATC
534.98
15.3
2.4
1.6%
Al-Ahlia
167.68
NM*
1.6
-
ACIG
245.40
25.9
1.9
-
AICC
377.10
36.3
1.5
-
Trade Union
462.00
8.9
1.5
-
Sagr Insurance
719.25
8.2
1.4
7.0%
UCA
662.48
5.8
1.6
-
Saudi Re
637.00
14.6
0.8
-
Bupa Arabia
8,944.00
15.0
4.4
1.3%
AlRajhi Takaful
1,965.20
17.1
4.3
-
469.00
10.6
2.0
-
1,007.55
22.0
2.0
-
Gulf General
288.40
11.9
1.5
-
Buruj
698.50
6.9
2.0
1.8%
Al Alamiya
999.20
21.2
2.9
-
Solidarity
391.00
7.4
1.5
-
Wataniya
519.80
10.8
2.6
-
Amana Insurance
231.28
22.1
2.0
-
Enaya
290.80
NM*
1.8
-
Alinma Tokio M
700.20
NM*
2.4
-
40,336.16
13.2
2.8
-
Tawuniya
CHUBB AXA Cooperative
Insurance Sector
Source: Argaam, *NM: Not meaningfull, prices as of 13 of June 2017
RESEARCH DIVISION
Acting 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 Investment
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
& sales
brokerage
Centers & ADC
Central Region
Abdullah Al-Rahit
Alaa Al-Yousef
Luay Jawad Al-Motawa
Brokerage
Sultan Ibrahim AL-Mutawa
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
Abdullah Q. Al-Misbani
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
+966 12 6618400 [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
