Saudi Insurance Sector- Quarterly
Insurance Sector Report
August 2017
Sector report | KSA | 2 Quarter 2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q2-2017
August 2017
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 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
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
8000 6000
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Premium Ceded - LHS
Retention Ratio - RHS
17.8%
16.9%
25.1%
20.9%
27.2% 26.1%
23.8% 24.8%
19.9%
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
6.8%
2.2%
-2.4%
-4.4%
Q2 - 2017
17.5%
32.1%
Q1 - 2017
13.4%
27.3%
Q4 - 2016
19.4%
20.4%
24.4%
23.9%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
% Growth (YoY) - RHS
-2.5% -4.5%
Others
-6.5%
-1.2%
Allianz SF
0.5%
Wafa Insurance
0.7%
ACIG
0.76%
Malath
0.84%
Buruj
-0.5%
Salama
MEDGULF
2.1%
Saudi Re
5.5%
1.5%
Trade Union
26.9%
Q3 - 2013
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -
3.5%
21.0%
9.9%
Q1 - 2013
0
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
Top 5 Gainers and Losers- GWP market Share Tawuniya
23.9%
Al Rajihi Takaful
Gulf General
2,000
Bupa Arabia
Bupa Arabia
Alinma Tokio M
UCA
4,000
NPE
Gross Written Premium- Market Share
7.7%
6,000
Q2 - 2013
Others
3.3%
8,000
Q1 - 2013
Others
34.1%
10,000
Q4 - 2012
59%
Accident and Liability
Amana Insurance
ATC
Al Ahlia
Salama
Al Rajihi Takaful
Enaya
Bupa Arabia
Basis Points
1
Protection and Saving
Accident and Liability
% Top 5 and Bottom 5- Retention Ratio % 100% % 90% % 80% % 70% % 60% % 50% % 40% % 30% % 20% % 10%
% Growth (YoY) - RHS
Premium Ceded-Industry
Q3 - 2012
35%
-2.6%
-9.6% -2.1%
12,000
Trade Union
38%
0%
Health
1%
Motor
Property/ Fire
15.5%
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% 2.0%
Net Premium Earned
3%
Motor 46%
11.9% 16.7%
12.2%
GWP - LHS
Q2 - 2012
2%
Health
8%
Q3 - 2012
0
Q1 - 2012
6%
2%
NPE-Sector Wise
24.2% 24.6%
2000
Al Rajihi Takaful
GWP-Sector WIse
19.3%
Q4 - 2012
Retention Ratio: Industry retention ratio stood at 82.4% in Q2-2017, as compared to 81.4% in Q2-2016. BUPA Arabia has the highest retention ratio of 99.0% in Q2-2017, Enaya at 96.2% had the second highest retention ratio.
22.6% 22.7% 21.5%
18.3%
8.0%
Q3 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 5.6% in Q2-2016 to 7.7% in Q2-2017 an improvement of 210bps1, followed by Trade Union which showed an improvement of 84bps.Saudi Reinsurance saw a drop of 360bps in its market share from 5.0% to 1.4%.
14.5%
26.7%
4000
Market Share Tawuniya with 23.9% market share in GWP was the biggest player, followed by BUPA at 21.0%.
9.0%
Q2 - 2012
Health Sector accounted for 46% of the total GWP, followed by Motor which accounted for 38% of GWP
20.4%
Q2 - 2012
NPE (Net Premium Earned) in Q2-2017 at SAR 7.7bn showed a fall of 4.4%YoY.
30.2%
10000
Q1 - 2012
NWP (Net Written Premiums) in Q2-2017 stood at SAR 7.2bn, depicting a fall of 1.4%YoY.
Gross Written Premium 12000
Q1 - 2012
GWP (Gross Written Premiums) in Q2-2017 stood at SAR 8.8bn depicting a fall of 2.5% YoY.
-0.5%
-0.4%
-0.4%
-3.6%
Source: Argaam, SAMA
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017 Gross Claims Paid
3,000
Claims Market Share-sector wise Others
Q1 - 2017
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 - 2013
Q4 - 2012
Q2 - 2014
-5%
23%
29%
21%
19%
17%
0.2%
Q1 - 2017
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-2%
Q4 - 2016
7% -7%
Q1 - 2012
-
24%
17%
-8.3%
Q2 - 2017
17%
1,000
Q2 - 2016
70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%
Q2 - 2017
SABB Takaful
Jazira Takaful Jazira Takaful
Amana Insurance
ATC
Al Alamiya
Enaya
Al Ahlia
Solidarity
Chubb Arabia
Alinma Tokio M
ATC
Gulf General
Sagr Insurance
MetLife AIG Alarabi
Gulf Union
Wataniya
Buruj
AICC
UCA
ACIG
Saudi Re
Arabian Shield
Salama
Walaa Insurance
SAICO
Others
9.9%
0%
% Growth (YoY) - RHS
Net Claims Paid - LHS
25%
3,000
Property/ Fire
Combined Ratio
UCA
Q2 - 2017
Solidarity
Chubb Arabia
Buruj
Arabian Shield
Gulf General
Trade Union
Al Alamiya
Bupa Arabia
Tawuniya
Salama
Al Rajihi Takaful
Al Ahlia
AICC
ACIG
Sagr Insurance
Saudi Re
AXA
Allianz SF
SAICO
Wafa Insurance
SABB Takaful
Gulf Union
Malath Insurance
Enaya
MetLife AIG Alarabi
Jazira Takaful
SABB Takaful
ATC
Solidarity
Al Alamiya
Chubb Arabia
UCA
Sagr Insurance
Buruj
Amana Insurance
Gulf General
Enaya
Gulf Union
Wataniya
AICC
Saudi Re
Arabian Shield
Walaa
SAICO
Alinma Tokio M
Al Ahlia
Trade Union
Salama
ACIG
Allianz SF
Tawuniya
Wafa Insurance
Bupa Arabia
AXA
MetLife
Al Rajihi Takaful
20%
Wataniya
40%
Alinma Tokio M
60%
Q2 - 2016
Amana Insurance
80%
Walaa Insurance
180% 160% 140% 120% 100% 80% 60% 40% 20% 0%
Q2 - 2017
MEDGULF
Q2 - 2016
100%
MEDGULF
29%
Trade Union
Others
5%
-7%
40%
38%
32%
24%
Allianz SF
Saving 63%
Loss Ratio
Malath Insurance
24%
Wafa Insurance
Protection and
Al Rajihi Takaful
120%
0%
34%
AXA
Trade Union
4,000
Malath Insurance
21.0%
5,000
Al Rajihi Takaful
MEDGULF
66%
6,000
1800 1600 1400 1200 1000 800 600 400 200 0
Motor
33%
10%
-1%
7%
Claims Paid-Company wise
Health
Tawuniya
34.1%
7,000
Bupa Arabia
Bupa Arabia
23.9%
15% 9%
Net Claims Paid
MEDGULF
2% 1%
20%
-3%
Tawuniya
1%
25%
IN MN SAR
Claims Market Share-Company wise
30%
9%
2,000
MedGulf had the highest combined ratio of 177%, whereas Aljazira takaful had the lowest combined ratio of 27%.
35%
13%
Q1 - 2015
Aljazira Takaful had the lowest loss ratio of 7.9%.
18%
Q4 - 2014
Malath insurance had the highest loss ratio of 114% in Q2-2017,followed by MedGulf at 86% in Q2-2017.
17%
19%
24%
% Growth (YoY) - RHS
23%
9%
Q2 - 2012
-
Aljazira Takaful paid the lowest claims of SAR 1.6mn. Health sector accounted for the highest share in claims at 63% , followed by Motor sector at 33%.
25%
1,500
Q1 - 2012
BUPA Arabia with 25.2% market share in GWP paid the highest claims of SAR 1.65bn, followed by Tawuniya at 23.2% market share in claims.
7.7%
17%
22%
Gross Claims Paid - LHS 24% 28%
31%
27%
Q4 - 2016
4,500
Market Share
3.3%
24%
6,000
Q3 - 2012
NCP (Net Claim Paid) in Q2-2017 stood at SAR 5.8bn, depicting a fall of 8.3%YoY.
30%
Q2 - 2017
7,500
Q1 - 2013
GCP (Gross Claims Paid) in Q2-2017 stood at SAR 6.5bn depicting a fall of 7.2% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
(500)
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Enaya
Alinma Tokio M
MEDGULF MEDGULF
Amana Insurance SABB Takaful
Wafa Insurance
AICC
Al Ahlia
Sagr Insurance
Malath Insurance
Allianz SF
Gulf Union
ACIG
Wataniya
Al Alamiya
Chubb Arabia
Saudi Re
Jazira Takaful
ATC
SAICO
AXA-
Gulf General
Solidarity
Salama
Arabian Shield
Amana Insurance Wafa Insurance
Al Ahlia
SABB Takaful
Alinma Tokio M
SAICO
AICC
AICC
Saudi Re
Malath Insurance
ACIG
Sagr Insurance
Al Alamiya
Allianz SF
Gulf Union
Jazira Takaful
Wataniya
Gulf General
Chubb Arabia
ATC
SAICO
Solidarity
AXA
Salama
Trade Union
Buruj
UCA
Tawuniya
Arabian Shield
Wafa Insurance
Arabian Shield
Amana Insurance
Gulf Union
Walaa Insurance
Al Alamiya
Chubb Arabia
Malath Insurance
Enaya
Wataniya
UCA
Allianz SF
MetLife AIG Alarabi
MEDGULF
ACIG
SABB Takaful
Al Ahlia
Solidarity
Salama
Jazira Takaful
Sagr Insurance
AXA-
ATC
MEDGULF
Enaya
MetLife
Alinma Tokio M
Al Ahlia Bupa Arabia
Solidarity
Gulf General
-15.0%
Buruj
-80%
Trade Union
-10.0%
45 40 35 30 25 20 15 10 5 0
Saudi Re
-60%
Walaa Insurance
-5.0%
Arabian Shield
MEDGULF
Malath
Enaya
Investment Income
5.0% 0.0%
-100
Saudi Re
Al Rajihi Takaful
ATC
Walaa Insurance
Sagr Arabian Gulf Shield General
10.0%
Buruj
Arabian Shield
Tawuniya
Buruj
Al Rajihi Takaful
-40%
Wataniya
-20%
Al Ahlia
20% 0%
Chubb Arabia
ROA-Top 5/ Bottom 5
40%
MetLife AIG
ROE-Top 5 /Bottom 5
Jazira Solidarity Amana Buruj Takaful
Bupa Arabia
Gulf Union
Bupa Arabia
ATC
-50
Tawuniya
Jazira Solidarity Amana Buruj Chubb Sagr Arabian Walaa Takaful Insurance Arabia Shield
0
Al Rajihi Takaful
0.0%
0.0%
In Mn SAR
5.0%
50
In Mn SAR
10.0%
0.5%
Trade Union
0
UCA
50
100
15.0%
1.0%
Q4 - 2012
100
150
20.0%
1.5%
Q3 - 2012
150
Surplus From Insurance Operations
25.0%
2.0%
Q2 - 2012
Q1 - 2012
Net Income-Company wise
30.0%
2.5%
197.9
(31)
Alinma Tokio M
35.0%
319
Enaya
3.0%
620
MetLife AIG Alarabi
3.5%
285
122
432
MetLife AIG Alarabi
Net Margins-Highest 10
240
233
(41)
(117)
491
(1,159)
-100
40.0%
405
199
3
(900) (1,300)
-50
Operating Margins-Highest 10
(49)
Buruj
Buruj Co-Operative posted the highest ROA of 10.0%.
(100)
179
19
Walaa Insurance
Wataniya posted the highest ROE of 35.6%
340
125
Al Rajihi Takaful
Aljazira takaful showed the highest Operating and net margins at 3.1% and 34.9%, respectively.
300
Tawuniya
Tawuniya showed the highest investment income of SAR 61.2mn in the sector, registering growth of 36.3%YoY and 77.0%QoQ.
803
700
Bupa Arabia
Tawuniya showed the highest surplus, from its insurance operations, at SAR 208.4mn, depicting a fall of 5.8%YoY and a QoQ jump of 49.2%.
1,100
In MN SAR
Tawuniya with net income of SAR 230.9mn, showed a jump of 0.8%YoY and 61.9% QoQ.
Net Income
In Mn SAR
Net income for the sector stood at SAR 197.9mn in Q2-2017, as compared to SAR 431.9mn in Q2-2016, depicting a fall of 54.2%. On a QoQ basis net income showed a decline of 37.9%.
Source: Argaam
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
United Cooperative Assurance had the lowest PE of 8.3x, followed by Buruj with a PE of 8.5x.
Lowest PE 16.0 14.0
Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.8x, followed by Sagr insurance with a PB of 1.4x
12.0
Only 7 companies gave out dividends, SAGR insurance had the highest dividend yield of 7.4% followed by Tawuniya with a dividend yield of 5.4%
6.0
10.0 8.0
4.0 2.0 0.0
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
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 TASI (LHS)
Insurance Sector (RHS)
BUPA-1 Yr Performance 5500 5000 4000 3500 3000 2500 Nov 2016
Feb 2017
Insurance Sector (LHS)
May 2017
Bupa (RHS)
Aug 2017
4000 3500
Insurance Sector (LHS)
0.0
May 2017 Medgulf (RHS)
Aug 2017
Saudi Re
100 90
3500
10
80
3000
0
Nov 2016
Feb 2017
Insurance Sector (LHS)
May 2017
Aug 2017
6.0%
4.7%
2.0%
1.7%
1.0% 0.0%
Alrajhi takaful (RHS)
Sagr Insurance
Tawuniya
Arabian Shield
Jazira Takaful
1.4%
Buruj
Top 5 Companies-Market Cap 30
10,000
25
8,000
5000 4500
20 15 Nov Feb 2016 2017 Insurance Sector (LHS)
Solidarity
3.0%
12,000
3000 Aug 2016
Gulf General
4.0%
5500
0
AXA
5.4%
5.0%
35
3500
Gulf Union
7.4%
6000
5
Sagr Insurance
Highest Dividend Yield
20
4000
AICC
0.2
4000
10
Trade Union
0.4
30
15
Feb 2017
Tawuniya (RHS)
Aug 2017
4500
20
Nov 2016
Insurance Sector (LHS)
May 2017
40
25
4500
Aug 2016
Feb 2017
Walaa-1 Yr Performance
5000
3000
Nov 2016
5000
30
Al Ahlia
Wataniya
0.6 50
7.0%
5500
SAICO
Salama
0.8
50
35
Gulf Union
1.0
5500
6000
SAICO
1.2 70
140
Medgulf-1 Yr Performance
Solidarity
1.4
8.0%
Aug 2016
Arabian Shield
1.6
60
110
Walaa
1.8
6000
120
Trade Union
2.0
150 130
4500
Aug 2016
90
Alrajhi Takaful-1 Yr Performance
6000
2000
Aug 2016
Buruj
Lowest PB 110
May 2017 WALAA (RHS)
Aug 2017
10
In Mn SAR
6500
UCA
6,000 4,000 2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
Al Alamiya
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase
Q2-2016
Q1-2017
Q2-2017
Q2-2016
Q1-2017
Q2-2017
Q2-2016
Q1-2017
Q2-2017
2,135
2,028
2,104
-1.5%
3.7%
1,725
1,885
1,764
2.3%
-6.4%
1,719
1,760
1,832
6.6%
4.1%
Salama
141
228
202
42.7%
-11.4%
136
218
194
43.3%
-10.7%
100
146
168
68.3%
14.5%
UCA
261
109
251
-3.6%
130.9%
90
20
61
-32.5%
198.2%
185
58
52
-71.8%
-10.5%
Al Rajihi Takaful
506
1,107
680
34.4%
-38.6%
486
1,076
649
33.6%
-39.7%
362
627
686
89.8%
9.4%
Al Alamiya
50
86
48
-3.4%
-44.3%
25
59
26
0.8%
-56.3%
55
33
46
-16.6%
38.2% NM*
Tawuniya
ACIG
147
82
102
-30.3%
25.1%
120
67
88
-26.7%
NM*
104
99
87
-16.3%
1,828
2,253
1,848
1.1%
-18.0%
1,817
2,236
1,832
0.8%
-18.1%
1,864
1,876
1,909
2.4%
1.8%
Arabian Shield
175
240
165
-5.7%
-31.1%
117
149
114
-2.6%
-23.8%
92
127
122
32.2%
-4.2%
Bupa Arabia Buruj
101
177
144
43.1%
-18.4%
87
166
133
53.0%
-20.0%
101
105
117
16.2%
11.9%
Sagr Insurance
50
93
93
87.7%
0.4%
24
82
68
178.4%
-17.2%
159
28
42
-73.3%
53.4%
Malath Insurance
253
448
144
-43.2%
-67.9%
117
422
127
8.7%
-69.9%
350
203
227
-35.1%
12.1%
Solidarity
40
36
21
-48.6%
-42.7%
32
31
18
-44.5%
-43.4%
54
50
43
-19.3%
-12.6%
Trade Union
221
229
289
30.7%
26.0%
167
187
245
46.4%
30.7%
198
185
189
-4.6%
2.3%
Walaa
222
300
218
-2.1%
-27.4%
194
247
173
-11.0%
-30.1%
145
191
200
38.2%
4.8%
Allianz SF
272
300
227
-16.5%
-24.2%
166
253
134
-18.8%
-46.8%
120
147
166
38.2%
12.5%
Al Ahlia
43
46
46
8.9%
1.6%
40
42
43
8.1%
3.1%
51
34
37
-27.2%
9.3%
MEDGULF
891
784
869
-2.5%
10.8%
744
687
702
-5.6%
2.2%
740
616
586
-20.7%
-4.7%
Wafa Insurance
161
233
119
-26.1%
-49.0%
140
152
73
-47.7%
-52.0%
128
115
101
-20.5%
-12.1%
SABB Takaful
47
53
40
-14.5%
-23.1%
39
38
34
-12.8%
-9.9%
45
27
34
-23.5%
26.5%
SAICO
179
375
149
-16.9%
-60.3%
131
205
105
-20.0%
-48.8%
128
133
130
1.5%
-2.4%
Gulf Union
56
161
79
41.4%
-50.9%
29
91
52
80.6%
-42.4%
23
43
56
142.8%
31.9%
Saudi Re
449
456
121
-73.1%
-73.5%
435
431
89
-79.6%
-79.4%
631
146
143
-77.3%
-2.1%
AICC
86
112
69
-19.9%
-38.8%
50
76
46
-8.0%
-39.0%
85
69
73
-14.7%
4.7%
ATC
64
118
58
-9.5%
-50.8%
11
32
10
-5.5%
-68.0%
20
20
21
6.0%
3.2%
AXA-Cooperative
201
721
220
9.7%
-69.5%
183
597
195
6.6%
-67.4%
265
308
323
21.8%
4.6%
Chubb Arabia
53
84
48
-9.5%
-42.7%
28
48
28
1.6%
-42.1%
29
24
27
-9.1%
9.7%
Gulf General
61
82
46
-24.3%
-43.5%
34
40
23
-30.6%
-41.5%
39
24
29
-26.4%
21.2%
Wataniya
78
266
83
5.7%
-69.0%
36
137
42
19.6%
-69.1%
63
72
74
16.8%
3.3%
Amana Insurance
55
23
16
-70.7%
-30.1%
46
9
6
-86.9%
-32.5%
77
18
14
-81.8%
-22.8%
Enaya
37
49
66
79.3%
35.2%
22
48
65
197.2%
36.6%
16
30
34
108.7%
12.9%
Alinma Tokio M
69
104
103
48.8%
-0.8%
32
72
25
-22.0%
-64.8%
28
31
32
13.8%
2.1%
MetLife
57
103
88
54.7%
-14.8%
32
88
63
97.1%
-28.0%
37
47
55
48.2%
18.3%
Jazira Takaful Total
29
13
32
8.8%
142.5%
11
2
13
21.9%
456.8%
7
7
9
16.7%
16.9%
9,019
11,499
8,789
-2.5%
-23.6%
7,344
9,894
7,240
-1.4%
-26.8%
8,019
7,401
7,665
-4.4%
3.6%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 2 Gross Claims Paid
YoY %Increase
Q2-2016
Q1-2017
Q2-2017
MetLife
38
47
46
22.1%
Jazira Takaful
4
7
2
-59.5%
1,361
1,432
1,519
11.6%
468
327
264
-43.6%
Tawuniya Malath Insurance
QoQ %Increase
Net Claims Paid
YoY %Increase
QoQ %Increase
Q2-2016
Q1-2017
Q2-2017
-2.4%
33
38
42
25.1%
9.9%
-77.3%
1
1
0
-56.6%
-36.3%
6.1%
1,306
1,408
1,445
10.6%
2.6%
-19.4%
400
200
188
-52.8%
-5.8% -4.8%
MEDGULF
842
663
633
-24.9%
-4.5%
657
567
540
-17.9%
Allianz SF
123
134
147
19.1%
9.4%
100
112
129
28.5%
14.7%
Salama
68
103
112
64.1%
8.6%
80
105
129
61.3%
22.9%
Walaa
85
126
125
47.3%
-0.7%
79
109
115
44.6%
5.0%
Arabian Shield
82
93
90
10.0%
-3.7%
66
89
70
7.0%
-21.0% -29.7%
SABB Takaful
12
11
15
31.3%
38.3%
4
4
3
-23.9%
SAICO
112
96
135
20.8%
40.6%
80
90
88
9.6%
-3.0%
Wafa Insurance
102
143
149
46.0%
4.2%
102
89
76
-26.1%
-15.0%
Gulf Union
23
40
47
105.6%
16.9%
11
26
35
213.1%
36.0%
ATC
12
16
35
192.9%
112.6%
4
5
3
-31.0%
-41.8%
Al Ahlia
36
27
24
-34.7%
-12.0%
36
21
28
-23.0%
33.9%
ACIG
86
88
73
-15.0%
-16.7%
81
72
59
-27.1%
-17.6%
AICC
90
64
63
-30.2%
-1.2%
56
41
42
-25.4%
2.3%
Trade Union
182
133
143
-21.4%
7.6%
176
137
118
-33.0%
-14.1% -26.6%
Solidarity
46
34
26
-43.0%
-23.7%
25
22
16
-35.6%
Wataniya
54
61
57
5.4%
-6.3%
46
42
48
5.0%
14.5%
Amana Insurance
77
42
22
-71.3%
-47.4%
63
16
9
-86.4%
-47.8%
AXA-Cooperative
187
227
211
13.2%
-6.8%
219
253
267
21.8%
5.8%
Gulf General
65
29
35
-45.2%
22.0%
20
14
13
-31.5%
-3.1% -3.3%
Buruj
56
51
61
9.5%
19.4%
56
64
62
11.0%
Al Alamiya
47
15
23
-50.3%
56.3%
25
7
12
-49.2%
73.9%
Saudi Re
708
64
82
-88.4%
28.7%
569
107
92
-83.8%
-13.8%
UCA Bupa Arabia
167
114
64
-61.8%
-43.9%
124
4
4
-96.7%
-7.7%
1,509
1,636
1,647
9.2%
0.7%
1,511
1,669
1,522
0.7%
-8.8%
Sagr Insurance
69
49
42
-38.4%
-13.6%
69
18
28
-59.8%
56.1%
Chubb Arabia
30
13
29
-3.8%
128.9%
10
9
9
-11.8%
-3.0%
Enaya
15
19
23
50.6%
24.1%
8
20
20
154.9%
4.2%
Al Rajihi Takaful
250
435
559
123.3%
28.4%
303
541
582
91.9%
7.7%
Alinma Tokio M Total
33
90
30
-7.8%
-66.4%
23
18
20
-13.7%
10.6%
7,038
6,428
6,533
-7.2%
1.6%
6,344
5,918
5,815
-8.3%
-1.7% Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q2-2016
Q1-2017
Q2-2017
MetLife AIG Alarabi
(7.6)
(6.9)
(3.2)
-57.3%
Jazira Takaful
6.3
7.3
8.9
41.3%
Tawuniya
243.9
160.3
248.8
QoQ %Increase
Net Income
YoY %Increase
QoQ %Increase
(3.8)
-50.5%
-48.9%
8.1
41.7%
15.3%
231.0
0.8%
61.9% -52.0%
Q2-2016
Q1-2017
Q2-2017
-52.8%
(7.6)
(7.4)
21.9%
5.7
7.0
2.0%
55.2%
229.1
142.6
Malath Insurance
(129.6)
8.9
5.0
-103.9%
-43.2%
(131.5)
7.4
3.5
-102.7%
MEDGULF
(19.7)
(93.0)
(417.3)
2020.1%
348.9%
(21.6)
(94.9)
(440.0)
1935.2%
363.9%
Allianz SF
6.3
8.8
7.8
24.0%
-11.6%
5.2
7.2
6.0
16.9%
-15.7%
Salama
3.0
14.2
16.2
433.1%
14.0%
1.8
12.9
14.9
737.1%
15.3%
Walaa Insurance
30.6
32.2
35.6
16.3%
10.4%
28.6
29.0
32.3
13.1%
11.6%
Arabian Shield
10.1
20.7
22.3
121.9%
8.1%
7.7
17.3
19.2
147.7%
10.8%
SABB Takaful
2.8
2.1
1.8
-36.8%
-15.5%
1.4
0.8
0.6
-57.1%
-21.3%
SAICO
21.6
9.4
11.5
-46.7%
22.4%
19.9
7.8
9.8
-50.7%
25.2%
Wafa Insurance
4.5
3.6
2.9
-34.8%
-19.8%
4.2
3.3
1.1
-74.3%
-68.1% -31.4%
Gulf Union
6.4
6.6
5.8
-9.9%
-12.1%
5.8
5.8
4.0
-31.2%
ATC
9.3
9.4
11.1
18.9%
18.3%
7.9
7.9
9.4
19.2%
19.7%
Al Ahlia
(5.0)
0.7
4.1
-181.7%
477.4%
(5.3)
0.2
3.4
-165.1%
1441.3%
ACIG
4.4
4.9
6.6
50.1%
34.8%
4.0
4.5
6.1
51.2%
35.9%
AICC
2.1
5.2
3.6
73.2%
-29.3%
1.6
3.8
1.6
-2.7%
-58.8% 306.2%
Trade Union
6.1
8.1
25.1
310.7%
211.3%
4.6
5.6
22.6
389.9%
Solidarity
9.5
10.6
12.9
36.3%
21.3%
8.4
9.2
13.1
56.4%
42.4%
Wataniya
4.2
15.7
7.7
81.1%
-51.1%
3.8
14.9
6.9
79.8%
-53.9%
Amana Insurance
(8.6)
(4.6)
(1.8)
-79.1%
-60.8%
(8.0)
(4.6)
(2.3)
-71.3%
-50.1%
AXA-Cooperative
9.5
16.3
14.8
55.6%
-8.9%
6.5
12.5
10.8
66.1%
-13.8% -670.5%
Gulf General
11.6
(0.3)
11.3
-2.9%
-3585.5%
8.0
(1.7)
9.8
22.4%
Buruj
22.6
28.0
27.8
22.9%
-0.8%
20.5
25.2
25.1
22.3%
-0.3%
Al Alamiya
13.5
16.5
7.1
-47.2%
-57.0%
11.2
14.1
6.4
-43.0%
-54.4%
Saudi Re
(8.9)
7.5
13.4
-250.2%
79.1%
(12.5)
3.9
9.4
-174.9%
142.3%
UCA
43.2
34.2
27.4
-36.4%
-19.8%
42.2
32.7
25.9
-38.5%
-20.8%
Bupa Arabia
104.2
36.7
145.8
39.9%
297.3%
119.6
17.9
127.0
6.2%
609.3%
Sagr Insurance
58.0
5.1
6.9
-88.1%
36.1%
55.1
1.3
2.3
-95.8%
79.5%
Chubb Arabia
11.8
9.1
9.8
-16.9%
7.0%
10.2
7.9
8.1
-20.5%
2.6%
Enaya
(5.5)
(6.6)
(3.5)
-36.9%
-47.0%
(6.1)
(7.3)
(4.1)
-33.3%
-43.8%
Al Rajihi Takaful
24.4
34.1
41.1
68.2%
20.5%
22.3
31.4
38.1
70.6%
21.5%
Alinma Tokio M
(10.8)
1.5
(7.5)
-30.9%
-614.7%
(10.8)
0.5
(8.5)
-21.2%
-1802.4%
Total
474.2
406.3
309.8
-34.7%
-23.8%
431.9
318.7
197.9
-54.2%
-37.9%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,775.00
14.3
4.1
5%
Salama
489.50
10.6
2.2
-
UCA
763.42
8.3
1.7
-
Al Rajihi Takaful
2,180.00
17.0
4.4
-
Al Alamiya
1,244.00
36.9
3.5
-
300.80
30.9
2.3
-
9,520.00
19.3
4.7
1.3%
Arabian Shield
852.00
9.1
2.4
4.7%
Buruj
867.50
8.5
2.5
1.4%
Sagr Insurance
670.00
20.5
1.4
7.4%
Malath Insurance
263.52
NEG
2.6
-
Solidarity
478.00
9.5
1.8
-
Trade Union
552.75
8.8
1.7
-
1,086.00
8.9
2.2
-
Allianz SF
746.00
34.2
3.2
-
Al Ahlia
179.52
NEG
1.7
-
1,230.00
NEG
3.0
-
Wafa Insurance
285.97
15.5
2.3
-
SABB Takaful
936.70
HIGH
2.6
-
SAICO
488.00
10.1
1.6
-
Gulf Union
272.10
10.6
1.8
-
Saudi Re
678.00
13.6
0.8
-
AICC
429.30
HIGH
1.7
-
ATC
621.67
20.1
2.8
1.3%
AXA-Cooperative
922.50
25.0
1.8
-
Chubb Arabia
477.00
13.7
2.0
-
Gulf General
360.00
14.6
1.8
-
Wataniya
653.00
13.5
3.2
-
Amana Insurance
373.80
23.4
3.3
-
Enaya
403.60
NEG
2.5
-
Alinma Tokio M
732.00
NEG
2.6
-
MetLife AIG Alarabi
696.50
NEG
3.1
-
1,006.25
35.1
2.7
1.7%
42,534.40
22.4
3.0
-
Tawuniya
ACIG Bupa Arabia
Walaa Insurance
MEDGULF
Jazira Takaful Sector
Source: Argaam, *NM: Not meaningfull, prices as of 13 of June 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
August 2017
Sector report | KSA | 2 Quarter 2017
Please read Disclaimer on the back
Saudi Insurance Sector- Quarterly Q2-2017
August 2017
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 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
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
8000 6000
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Premium Ceded - LHS
Retention Ratio - RHS
17.8%
16.9%
25.1%
20.9%
27.2% 26.1%
23.8% 24.8%
19.9%
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q1 - 2015
Q4 - 2014
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
6.8%
2.2%
-2.4%
-4.4%
Q2 - 2017
17.5%
32.1%
Q1 - 2017
13.4%
27.3%
Q4 - 2016
19.4%
20.4%
24.4%
23.9%
35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
% Growth (YoY) - RHS
-2.5% -4.5%
Others
-6.5%
-1.2%
Allianz SF
0.5%
Wafa Insurance
0.7%
ACIG
0.76%
Malath
0.84%
Buruj
-0.5%
Salama
MEDGULF
2.1%
Saudi Re
5.5%
1.5%
Trade Union
26.9%
Q3 - 2013
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -
3.5%
21.0%
9.9%
Q1 - 2013
0
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70%
Top 5 Gainers and Losers- GWP market Share Tawuniya
23.9%
Al Rajihi Takaful
Gulf General
2,000
Bupa Arabia
Bupa Arabia
Alinma Tokio M
UCA
4,000
NPE
Gross Written Premium- Market Share
7.7%
6,000
Q2 - 2013
Others
3.3%
8,000
Q1 - 2013
Others
34.1%
10,000
Q4 - 2012
59%
Accident and Liability
Amana Insurance
ATC
Al Ahlia
Salama
Al Rajihi Takaful
Enaya
Bupa Arabia
Basis Points
1
Protection and Saving
Accident and Liability
% Top 5 and Bottom 5- Retention Ratio % 100% % 90% % 80% % 70% % 60% % 50% % 40% % 30% % 20% % 10%
% Growth (YoY) - RHS
Premium Ceded-Industry
Q3 - 2012
35%
-2.6%
-9.6% -2.1%
12,000
Trade Union
38%
0%
Health
1%
Motor
Property/ Fire
15.5%
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% 2.0%
Net Premium Earned
3%
Motor 46%
11.9% 16.7%
12.2%
GWP - LHS
Q2 - 2012
2%
Health
8%
Q3 - 2012
0
Q1 - 2012
6%
2%
NPE-Sector Wise
24.2% 24.6%
2000
Al Rajihi Takaful
GWP-Sector WIse
19.3%
Q4 - 2012
Retention Ratio: Industry retention ratio stood at 82.4% in Q2-2017, as compared to 81.4% in Q2-2016. BUPA Arabia has the highest retention ratio of 99.0% in Q2-2017, Enaya at 96.2% had the second highest retention ratio.
22.6% 22.7% 21.5%
18.3%
8.0%
Q3 - 2012
Gainer/Loser: Alrajhi Takaful improved its market share from 5.6% in Q2-2016 to 7.7% in Q2-2017 an improvement of 210bps1, followed by Trade Union which showed an improvement of 84bps.Saudi Reinsurance saw a drop of 360bps in its market share from 5.0% to 1.4%.
14.5%
26.7%
4000
Market Share Tawuniya with 23.9% market share in GWP was the biggest player, followed by BUPA at 21.0%.
9.0%
Q2 - 2012
Health Sector accounted for 46% of the total GWP, followed by Motor which accounted for 38% of GWP
20.4%
Q2 - 2012
NPE (Net Premium Earned) in Q2-2017 at SAR 7.7bn showed a fall of 4.4%YoY.
30.2%
10000
Q1 - 2012
NWP (Net Written Premiums) in Q2-2017 stood at SAR 7.2bn, depicting a fall of 1.4%YoY.
Gross Written Premium 12000
Q1 - 2012
GWP (Gross Written Premiums) in Q2-2017 stood at SAR 8.8bn depicting a fall of 2.5% YoY.
-0.5%
-0.4%
-0.4%
-3.6%
Source: Argaam, SAMA
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017 Gross Claims Paid
3,000
Claims Market Share-sector wise Others
Q1 - 2017
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 - 2013
Q4 - 2012
Q2 - 2014
-5%
23%
29%
21%
19%
17%
0.2%
Q1 - 2017
Q3 - 2016
Q2 - 2016
Q1 - 2016
Q4 - 2015
Q3 - 2015
Q2 - 2015
Q3 - 2014
Q2 - 2014
Q1 - 2014
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Q4 - 2012
Q3 - 2012
Q2 - 2012
-2%
Q4 - 2016
7% -7%
Q1 - 2012
-
24%
17%
-8.3%
Q2 - 2017
17%
1,000
Q2 - 2016
70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%
Q2 - 2017
SABB Takaful
Jazira Takaful Jazira Takaful
Amana Insurance
ATC
Al Alamiya
Enaya
Al Ahlia
Solidarity
Chubb Arabia
Alinma Tokio M
ATC
Gulf General
Sagr Insurance
MetLife AIG Alarabi
Gulf Union
Wataniya
Buruj
AICC
UCA
ACIG
Saudi Re
Arabian Shield
Salama
Walaa Insurance
SAICO
Others
9.9%
0%
% Growth (YoY) - RHS
Net Claims Paid - LHS
25%
3,000
Property/ Fire
Combined Ratio
UCA
Q2 - 2017
Solidarity
Chubb Arabia
Buruj
Arabian Shield
Gulf General
Trade Union
Al Alamiya
Bupa Arabia
Tawuniya
Salama
Al Rajihi Takaful
Al Ahlia
AICC
ACIG
Sagr Insurance
Saudi Re
AXA
Allianz SF
SAICO
Wafa Insurance
SABB Takaful
Gulf Union
Malath Insurance
Enaya
MetLife AIG Alarabi
Jazira Takaful
SABB Takaful
ATC
Solidarity
Al Alamiya
Chubb Arabia
UCA
Sagr Insurance
Buruj
Amana Insurance
Gulf General
Enaya
Gulf Union
Wataniya
AICC
Saudi Re
Arabian Shield
Walaa
SAICO
Alinma Tokio M
Al Ahlia
Trade Union
Salama
ACIG
Allianz SF
Tawuniya
Wafa Insurance
Bupa Arabia
AXA
MetLife
Al Rajihi Takaful
20%
Wataniya
40%
Alinma Tokio M
60%
Q2 - 2016
Amana Insurance
80%
Walaa Insurance
180% 160% 140% 120% 100% 80% 60% 40% 20% 0%
Q2 - 2017
MEDGULF
Q2 - 2016
100%
MEDGULF
29%
Trade Union
Others
5%
-7%
40%
38%
32%
24%
Allianz SF
Saving 63%
Loss Ratio
Malath Insurance
24%
Wafa Insurance
Protection and
Al Rajihi Takaful
120%
0%
34%
AXA
Trade Union
4,000
Malath Insurance
21.0%
5,000
Al Rajihi Takaful
MEDGULF
66%
6,000
1800 1600 1400 1200 1000 800 600 400 200 0
Motor
33%
10%
-1%
7%
Claims Paid-Company wise
Health
Tawuniya
34.1%
7,000
Bupa Arabia
Bupa Arabia
23.9%
15% 9%
Net Claims Paid
MEDGULF
2% 1%
20%
-3%
Tawuniya
1%
25%
IN MN SAR
Claims Market Share-Company wise
30%
9%
2,000
MedGulf had the highest combined ratio of 177%, whereas Aljazira takaful had the lowest combined ratio of 27%.
35%
13%
Q1 - 2015
Aljazira Takaful had the lowest loss ratio of 7.9%.
18%
Q4 - 2014
Malath insurance had the highest loss ratio of 114% in Q2-2017,followed by MedGulf at 86% in Q2-2017.
17%
19%
24%
% Growth (YoY) - RHS
23%
9%
Q2 - 2012
-
Aljazira Takaful paid the lowest claims of SAR 1.6mn. Health sector accounted for the highest share in claims at 63% , followed by Motor sector at 33%.
25%
1,500
Q1 - 2012
BUPA Arabia with 25.2% market share in GWP paid the highest claims of SAR 1.65bn, followed by Tawuniya at 23.2% market share in claims.
7.7%
17%
22%
Gross Claims Paid - LHS 24% 28%
31%
27%
Q4 - 2016
4,500
Market Share
3.3%
24%
6,000
Q3 - 2012
NCP (Net Claim Paid) in Q2-2017 stood at SAR 5.8bn, depicting a fall of 8.3%YoY.
30%
Q2 - 2017
7,500
Q1 - 2013
GCP (Gross Claims Paid) in Q2-2017 stood at SAR 6.5bn depicting a fall of 7.2% YoY.
Source: Argaam, SAMA, AlJazira Capital
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
(500)
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
Q4 - 2013
Q3 - 2013
Q2 - 2013
Q1 - 2013
Enaya
Alinma Tokio M
MEDGULF MEDGULF
Amana Insurance SABB Takaful
Wafa Insurance
AICC
Al Ahlia
Sagr Insurance
Malath Insurance
Allianz SF
Gulf Union
ACIG
Wataniya
Al Alamiya
Chubb Arabia
Saudi Re
Jazira Takaful
ATC
SAICO
AXA-
Gulf General
Solidarity
Salama
Arabian Shield
Amana Insurance Wafa Insurance
Al Ahlia
SABB Takaful
Alinma Tokio M
SAICO
AICC
AICC
Saudi Re
Malath Insurance
ACIG
Sagr Insurance
Al Alamiya
Allianz SF
Gulf Union
Jazira Takaful
Wataniya
Gulf General
Chubb Arabia
ATC
SAICO
Solidarity
AXA
Salama
Trade Union
Buruj
UCA
Tawuniya
Arabian Shield
Wafa Insurance
Arabian Shield
Amana Insurance
Gulf Union
Walaa Insurance
Al Alamiya
Chubb Arabia
Malath Insurance
Enaya
Wataniya
UCA
Allianz SF
MetLife AIG Alarabi
MEDGULF
ACIG
SABB Takaful
Al Ahlia
Solidarity
Salama
Jazira Takaful
Sagr Insurance
AXA-
ATC
MEDGULF
Enaya
MetLife
Alinma Tokio M
Al Ahlia Bupa Arabia
Solidarity
Gulf General
-15.0%
Buruj
-80%
Trade Union
-10.0%
45 40 35 30 25 20 15 10 5 0
Saudi Re
-60%
Walaa Insurance
-5.0%
Arabian Shield
MEDGULF
Malath
Enaya
Investment Income
5.0% 0.0%
-100
Saudi Re
Al Rajihi Takaful
ATC
Walaa Insurance
Sagr Arabian Gulf Shield General
10.0%
Buruj
Arabian Shield
Tawuniya
Buruj
Al Rajihi Takaful
-40%
Wataniya
-20%
Al Ahlia
20% 0%
Chubb Arabia
ROA-Top 5/ Bottom 5
40%
MetLife AIG
ROE-Top 5 /Bottom 5
Jazira Solidarity Amana Buruj Takaful
Bupa Arabia
Gulf Union
Bupa Arabia
ATC
-50
Tawuniya
Jazira Solidarity Amana Buruj Chubb Sagr Arabian Walaa Takaful Insurance Arabia Shield
0
Al Rajihi Takaful
0.0%
0.0%
In Mn SAR
5.0%
50
In Mn SAR
10.0%
0.5%
Trade Union
0
UCA
50
100
15.0%
1.0%
Q4 - 2012
100
150
20.0%
1.5%
Q3 - 2012
150
Surplus From Insurance Operations
25.0%
2.0%
Q2 - 2012
Q1 - 2012
Net Income-Company wise
30.0%
2.5%
197.9
(31)
Alinma Tokio M
35.0%
319
Enaya
3.0%
620
MetLife AIG Alarabi
3.5%
285
122
432
MetLife AIG Alarabi
Net Margins-Highest 10
240
233
(41)
(117)
491
(1,159)
-100
40.0%
405
199
3
(900) (1,300)
-50
Operating Margins-Highest 10
(49)
Buruj
Buruj Co-Operative posted the highest ROA of 10.0%.
(100)
179
19
Walaa Insurance
Wataniya posted the highest ROE of 35.6%
340
125
Al Rajihi Takaful
Aljazira takaful showed the highest Operating and net margins at 3.1% and 34.9%, respectively.
300
Tawuniya
Tawuniya showed the highest investment income of SAR 61.2mn in the sector, registering growth of 36.3%YoY and 77.0%QoQ.
803
700
Bupa Arabia
Tawuniya showed the highest surplus, from its insurance operations, at SAR 208.4mn, depicting a fall of 5.8%YoY and a QoQ jump of 49.2%.
1,100
In MN SAR
Tawuniya with net income of SAR 230.9mn, showed a jump of 0.8%YoY and 61.9% QoQ.
Net Income
In Mn SAR
Net income for the sector stood at SAR 197.9mn in Q2-2017, as compared to SAR 431.9mn in Q2-2016, depicting a fall of 54.2%. On a QoQ basis net income showed a decline of 37.9%.
Source: Argaam
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
United Cooperative Assurance had the lowest PE of 8.3x, followed by Buruj with a PE of 8.5x.
Lowest PE 16.0 14.0
Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.8x, followed by Sagr insurance with a PB of 1.4x
12.0
Only 7 companies gave out dividends, SAGR insurance had the highest dividend yield of 7.4% followed by Tawuniya with a dividend yield of 5.4%
6.0
10.0 8.0
4.0 2.0 0.0
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
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 TASI (LHS)
Insurance Sector (RHS)
BUPA-1 Yr Performance 5500 5000 4000 3500 3000 2500 Nov 2016
Feb 2017
Insurance Sector (LHS)
May 2017
Bupa (RHS)
Aug 2017
4000 3500
Insurance Sector (LHS)
0.0
May 2017 Medgulf (RHS)
Aug 2017
Saudi Re
100 90
3500
10
80
3000
0
Nov 2016
Feb 2017
Insurance Sector (LHS)
May 2017
Aug 2017
6.0%
4.7%
2.0%
1.7%
1.0% 0.0%
Alrajhi takaful (RHS)
Sagr Insurance
Tawuniya
Arabian Shield
Jazira Takaful
1.4%
Buruj
Top 5 Companies-Market Cap 30
10,000
25
8,000
5000 4500
20 15 Nov Feb 2016 2017 Insurance Sector (LHS)
Solidarity
3.0%
12,000
3000 Aug 2016
Gulf General
4.0%
5500
0
AXA
5.4%
5.0%
35
3500
Gulf Union
7.4%
6000
5
Sagr Insurance
Highest Dividend Yield
20
4000
AICC
0.2
4000
10
Trade Union
0.4
30
15
Feb 2017
Tawuniya (RHS)
Aug 2017
4500
20
Nov 2016
Insurance Sector (LHS)
May 2017
40
25
4500
Aug 2016
Feb 2017
Walaa-1 Yr Performance
5000
3000
Nov 2016
5000
30
Al Ahlia
Wataniya
0.6 50
7.0%
5500
SAICO
Salama
0.8
50
35
Gulf Union
1.0
5500
6000
SAICO
1.2 70
140
Medgulf-1 Yr Performance
Solidarity
1.4
8.0%
Aug 2016
Arabian Shield
1.6
60
110
Walaa
1.8
6000
120
Trade Union
2.0
150 130
4500
Aug 2016
90
Alrajhi Takaful-1 Yr Performance
6000
2000
Aug 2016
Buruj
Lowest PB 110
May 2017 WALAA (RHS)
Aug 2017
10
In Mn SAR
6500
UCA
6,000 4,000 2,000 -
Tawuniya
Bupa Arabia
AlRajhi Takaful
MEDGULF
Al Alamiya
Source: Tadawul, Bloomberg, prices as of 13 of June 2017
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 1 GWP
YoY %Increase
QoQ %Increase
NWP
YoY %Increase
QoQ %Increase
NPE
YoY %Increase
QoQ %Increase
Q2-2016
Q1-2017
Q2-2017
Q2-2016
Q1-2017
Q2-2017
Q2-2016
Q1-2017
Q2-2017
2,135
2,028
2,104
-1.5%
3.7%
1,725
1,885
1,764
2.3%
-6.4%
1,719
1,760
1,832
6.6%
4.1%
Salama
141
228
202
42.7%
-11.4%
136
218
194
43.3%
-10.7%
100
146
168
68.3%
14.5%
UCA
261
109
251
-3.6%
130.9%
90
20
61
-32.5%
198.2%
185
58
52
-71.8%
-10.5%
Al Rajihi Takaful
506
1,107
680
34.4%
-38.6%
486
1,076
649
33.6%
-39.7%
362
627
686
89.8%
9.4%
Al Alamiya
50
86
48
-3.4%
-44.3%
25
59
26
0.8%
-56.3%
55
33
46
-16.6%
38.2% NM*
Tawuniya
ACIG
147
82
102
-30.3%
25.1%
120
67
88
-26.7%
NM*
104
99
87
-16.3%
1,828
2,253
1,848
1.1%
-18.0%
1,817
2,236
1,832
0.8%
-18.1%
1,864
1,876
1,909
2.4%
1.8%
Arabian Shield
175
240
165
-5.7%
-31.1%
117
149
114
-2.6%
-23.8%
92
127
122
32.2%
-4.2%
Bupa Arabia Buruj
101
177
144
43.1%
-18.4%
87
166
133
53.0%
-20.0%
101
105
117
16.2%
11.9%
Sagr Insurance
50
93
93
87.7%
0.4%
24
82
68
178.4%
-17.2%
159
28
42
-73.3%
53.4%
Malath Insurance
253
448
144
-43.2%
-67.9%
117
422
127
8.7%
-69.9%
350
203
227
-35.1%
12.1%
Solidarity
40
36
21
-48.6%
-42.7%
32
31
18
-44.5%
-43.4%
54
50
43
-19.3%
-12.6%
Trade Union
221
229
289
30.7%
26.0%
167
187
245
46.4%
30.7%
198
185
189
-4.6%
2.3%
Walaa
222
300
218
-2.1%
-27.4%
194
247
173
-11.0%
-30.1%
145
191
200
38.2%
4.8%
Allianz SF
272
300
227
-16.5%
-24.2%
166
253
134
-18.8%
-46.8%
120
147
166
38.2%
12.5%
Al Ahlia
43
46
46
8.9%
1.6%
40
42
43
8.1%
3.1%
51
34
37
-27.2%
9.3%
MEDGULF
891
784
869
-2.5%
10.8%
744
687
702
-5.6%
2.2%
740
616
586
-20.7%
-4.7%
Wafa Insurance
161
233
119
-26.1%
-49.0%
140
152
73
-47.7%
-52.0%
128
115
101
-20.5%
-12.1%
SABB Takaful
47
53
40
-14.5%
-23.1%
39
38
34
-12.8%
-9.9%
45
27
34
-23.5%
26.5%
SAICO
179
375
149
-16.9%
-60.3%
131
205
105
-20.0%
-48.8%
128
133
130
1.5%
-2.4%
Gulf Union
56
161
79
41.4%
-50.9%
29
91
52
80.6%
-42.4%
23
43
56
142.8%
31.9%
Saudi Re
449
456
121
-73.1%
-73.5%
435
431
89
-79.6%
-79.4%
631
146
143
-77.3%
-2.1%
AICC
86
112
69
-19.9%
-38.8%
50
76
46
-8.0%
-39.0%
85
69
73
-14.7%
4.7%
ATC
64
118
58
-9.5%
-50.8%
11
32
10
-5.5%
-68.0%
20
20
21
6.0%
3.2%
AXA-Cooperative
201
721
220
9.7%
-69.5%
183
597
195
6.6%
-67.4%
265
308
323
21.8%
4.6%
Chubb Arabia
53
84
48
-9.5%
-42.7%
28
48
28
1.6%
-42.1%
29
24
27
-9.1%
9.7%
Gulf General
61
82
46
-24.3%
-43.5%
34
40
23
-30.6%
-41.5%
39
24
29
-26.4%
21.2%
Wataniya
78
266
83
5.7%
-69.0%
36
137
42
19.6%
-69.1%
63
72
74
16.8%
3.3%
Amana Insurance
55
23
16
-70.7%
-30.1%
46
9
6
-86.9%
-32.5%
77
18
14
-81.8%
-22.8%
Enaya
37
49
66
79.3%
35.2%
22
48
65
197.2%
36.6%
16
30
34
108.7%
12.9%
Alinma Tokio M
69
104
103
48.8%
-0.8%
32
72
25
-22.0%
-64.8%
28
31
32
13.8%
2.1%
MetLife
57
103
88
54.7%
-14.8%
32
88
63
97.1%
-28.0%
37
47
55
48.2%
18.3%
Jazira Takaful Total
29
13
32
8.8%
142.5%
11
2
13
21.9%
456.8%
7
7
9
16.7%
16.9%
9,019
11,499
8,789
-2.5%
-23.6%
7,344
9,894
7,240
-1.4%
-26.8%
8,019
7,401
7,665
-4.4%
3.6%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 2 Gross Claims Paid
YoY %Increase
Q2-2016
Q1-2017
Q2-2017
MetLife
38
47
46
22.1%
Jazira Takaful
4
7
2
-59.5%
1,361
1,432
1,519
11.6%
468
327
264
-43.6%
Tawuniya Malath Insurance
QoQ %Increase
Net Claims Paid
YoY %Increase
QoQ %Increase
Q2-2016
Q1-2017
Q2-2017
-2.4%
33
38
42
25.1%
9.9%
-77.3%
1
1
0
-56.6%
-36.3%
6.1%
1,306
1,408
1,445
10.6%
2.6%
-19.4%
400
200
188
-52.8%
-5.8% -4.8%
MEDGULF
842
663
633
-24.9%
-4.5%
657
567
540
-17.9%
Allianz SF
123
134
147
19.1%
9.4%
100
112
129
28.5%
14.7%
Salama
68
103
112
64.1%
8.6%
80
105
129
61.3%
22.9%
Walaa
85
126
125
47.3%
-0.7%
79
109
115
44.6%
5.0%
Arabian Shield
82
93
90
10.0%
-3.7%
66
89
70
7.0%
-21.0% -29.7%
SABB Takaful
12
11
15
31.3%
38.3%
4
4
3
-23.9%
SAICO
112
96
135
20.8%
40.6%
80
90
88
9.6%
-3.0%
Wafa Insurance
102
143
149
46.0%
4.2%
102
89
76
-26.1%
-15.0%
Gulf Union
23
40
47
105.6%
16.9%
11
26
35
213.1%
36.0%
ATC
12
16
35
192.9%
112.6%
4
5
3
-31.0%
-41.8%
Al Ahlia
36
27
24
-34.7%
-12.0%
36
21
28
-23.0%
33.9%
ACIG
86
88
73
-15.0%
-16.7%
81
72
59
-27.1%
-17.6%
AICC
90
64
63
-30.2%
-1.2%
56
41
42
-25.4%
2.3%
Trade Union
182
133
143
-21.4%
7.6%
176
137
118
-33.0%
-14.1% -26.6%
Solidarity
46
34
26
-43.0%
-23.7%
25
22
16
-35.6%
Wataniya
54
61
57
5.4%
-6.3%
46
42
48
5.0%
14.5%
Amana Insurance
77
42
22
-71.3%
-47.4%
63
16
9
-86.4%
-47.8%
AXA-Cooperative
187
227
211
13.2%
-6.8%
219
253
267
21.8%
5.8%
Gulf General
65
29
35
-45.2%
22.0%
20
14
13
-31.5%
-3.1% -3.3%
Buruj
56
51
61
9.5%
19.4%
56
64
62
11.0%
Al Alamiya
47
15
23
-50.3%
56.3%
25
7
12
-49.2%
73.9%
Saudi Re
708
64
82
-88.4%
28.7%
569
107
92
-83.8%
-13.8%
UCA Bupa Arabia
167
114
64
-61.8%
-43.9%
124
4
4
-96.7%
-7.7%
1,509
1,636
1,647
9.2%
0.7%
1,511
1,669
1,522
0.7%
-8.8%
Sagr Insurance
69
49
42
-38.4%
-13.6%
69
18
28
-59.8%
56.1%
Chubb Arabia
30
13
29
-3.8%
128.9%
10
9
9
-11.8%
-3.0%
Enaya
15
19
23
50.6%
24.1%
8
20
20
154.9%
4.2%
Al Rajihi Takaful
250
435
559
123.3%
28.4%
303
541
582
91.9%
7.7%
Alinma Tokio M Total
33
90
30
-7.8%
-66.4%
23
18
20
-13.7%
10.6%
7,038
6,428
6,533
-7.2%
1.6%
6,344
5,918
5,815
-8.3%
-1.7% Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 3 Net income Before Zakat
YoY %Increase
Q2-2016
Q1-2017
Q2-2017
MetLife AIG Alarabi
(7.6)
(6.9)
(3.2)
-57.3%
Jazira Takaful
6.3
7.3
8.9
41.3%
Tawuniya
243.9
160.3
248.8
QoQ %Increase
Net Income
YoY %Increase
QoQ %Increase
(3.8)
-50.5%
-48.9%
8.1
41.7%
15.3%
231.0
0.8%
61.9% -52.0%
Q2-2016
Q1-2017
Q2-2017
-52.8%
(7.6)
(7.4)
21.9%
5.7
7.0
2.0%
55.2%
229.1
142.6
Malath Insurance
(129.6)
8.9
5.0
-103.9%
-43.2%
(131.5)
7.4
3.5
-102.7%
MEDGULF
(19.7)
(93.0)
(417.3)
2020.1%
348.9%
(21.6)
(94.9)
(440.0)
1935.2%
363.9%
Allianz SF
6.3
8.8
7.8
24.0%
-11.6%
5.2
7.2
6.0
16.9%
-15.7%
Salama
3.0
14.2
16.2
433.1%
14.0%
1.8
12.9
14.9
737.1%
15.3%
Walaa Insurance
30.6
32.2
35.6
16.3%
10.4%
28.6
29.0
32.3
13.1%
11.6%
Arabian Shield
10.1
20.7
22.3
121.9%
8.1%
7.7
17.3
19.2
147.7%
10.8%
SABB Takaful
2.8
2.1
1.8
-36.8%
-15.5%
1.4
0.8
0.6
-57.1%
-21.3%
SAICO
21.6
9.4
11.5
-46.7%
22.4%
19.9
7.8
9.8
-50.7%
25.2%
Wafa Insurance
4.5
3.6
2.9
-34.8%
-19.8%
4.2
3.3
1.1
-74.3%
-68.1% -31.4%
Gulf Union
6.4
6.6
5.8
-9.9%
-12.1%
5.8
5.8
4.0
-31.2%
ATC
9.3
9.4
11.1
18.9%
18.3%
7.9
7.9
9.4
19.2%
19.7%
Al Ahlia
(5.0)
0.7
4.1
-181.7%
477.4%
(5.3)
0.2
3.4
-165.1%
1441.3%
ACIG
4.4
4.9
6.6
50.1%
34.8%
4.0
4.5
6.1
51.2%
35.9%
AICC
2.1
5.2
3.6
73.2%
-29.3%
1.6
3.8
1.6
-2.7%
-58.8% 306.2%
Trade Union
6.1
8.1
25.1
310.7%
211.3%
4.6
5.6
22.6
389.9%
Solidarity
9.5
10.6
12.9
36.3%
21.3%
8.4
9.2
13.1
56.4%
42.4%
Wataniya
4.2
15.7
7.7
81.1%
-51.1%
3.8
14.9
6.9
79.8%
-53.9%
Amana Insurance
(8.6)
(4.6)
(1.8)
-79.1%
-60.8%
(8.0)
(4.6)
(2.3)
-71.3%
-50.1%
AXA-Cooperative
9.5
16.3
14.8
55.6%
-8.9%
6.5
12.5
10.8
66.1%
-13.8% -670.5%
Gulf General
11.6
(0.3)
11.3
-2.9%
-3585.5%
8.0
(1.7)
9.8
22.4%
Buruj
22.6
28.0
27.8
22.9%
-0.8%
20.5
25.2
25.1
22.3%
-0.3%
Al Alamiya
13.5
16.5
7.1
-47.2%
-57.0%
11.2
14.1
6.4
-43.0%
-54.4%
Saudi Re
(8.9)
7.5
13.4
-250.2%
79.1%
(12.5)
3.9
9.4
-174.9%
142.3%
UCA
43.2
34.2
27.4
-36.4%
-19.8%
42.2
32.7
25.9
-38.5%
-20.8%
Bupa Arabia
104.2
36.7
145.8
39.9%
297.3%
119.6
17.9
127.0
6.2%
609.3%
Sagr Insurance
58.0
5.1
6.9
-88.1%
36.1%
55.1
1.3
2.3
-95.8%
79.5%
Chubb Arabia
11.8
9.1
9.8
-16.9%
7.0%
10.2
7.9
8.1
-20.5%
2.6%
Enaya
(5.5)
(6.6)
(3.5)
-36.9%
-47.0%
(6.1)
(7.3)
(4.1)
-33.3%
-43.8%
Al Rajihi Takaful
24.4
34.1
41.1
68.2%
20.5%
22.3
31.4
38.1
70.6%
21.5%
Alinma Tokio M
(10.8)
1.5
(7.5)
-30.9%
-614.7%
(10.8)
0.5
(8.5)
-21.2%
-1802.4%
Total
474.2
406.3
309.8
-34.7%
-23.8%
431.9
318.7
197.9
-54.2%
-37.9%
Source: Argaam, *NM: Not meaningfull
Insurance Sector Report
August 2017 Please read Disclaimer on the back
Sector report | KSA | 2 Quarter 2017
APPENDIX 4 Market Cap
PE
PB
Dividend Yield
11,775.00
14.3
4.1
5%
Salama
489.50
10.6
2.2
-
UCA
763.42
8.3
1.7
-
Al Rajihi Takaful
2,180.00
17.0
4.4
-
Al Alamiya
1,244.00
36.9
3.5
-
300.80
30.9
2.3
-
9,520.00
19.3
4.7
1.3%
Arabian Shield
852.00
9.1
2.4
4.7%
Buruj
867.50
8.5
2.5
1.4%
Sagr Insurance
670.00
20.5
1.4
7.4%
Malath Insurance
263.52
NEG
2.6
-
Solidarity
478.00
9.5
1.8
-
Trade Union
552.75
8.8
1.7
-
1,086.00
8.9
2.2
-
Allianz SF
746.00
34.2
3.2
-
Al Ahlia
179.52
NEG
1.7
-
1,230.00
NEG
3.0
-
Wafa Insurance
285.97
15.5
2.3
-
SABB Takaful
936.70
HIGH
2.6
-
SAICO
488.00
10.1
1.6
-
Gulf Union
272.10
10.6
1.8
-
Saudi Re
678.00
13.6
0.8
-
AICC
429.30
HIGH
1.7
-
ATC
621.67
20.1
2.8
1.3%
AXA-Cooperative
922.50
25.0
1.8
-
Chubb Arabia
477.00
13.7
2.0
-
Gulf General
360.00
14.6
1.8
-
Wataniya
653.00
13.5
3.2
-
Amana Insurance
373.80
23.4
3.3
-
Enaya
403.60
NEG
2.5
-
Alinma Tokio M
732.00
NEG
2.6
-
MetLife AIG Alarabi
696.50
NEG
3.1
-
1,006.25
35.1
2.7
1.7%
42,534.40
22.4
3.0
-
Tawuniya
ACIG Bupa Arabia
Walaa Insurance
MEDGULF
Jazira Takaful Sector
Source: Argaam, *NM: Not meaningfull, prices as of 13 of June 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
