Saudi Arabia’s insurance sector forecast to grow furtherApril 27 2015 by InsuranceAsia News Staff
Saudi Arabia’s low insurance penetration levels and improved profitability are expected to provide a further boost to the Kingdom’s insurance market, Moody’s Investors Service reported.
Last year, the 37 listed insurance companies in Saudi Arabia posted an overall combined profit of over SAR700m (US$200m) compared with a loss of over SAR1.4bn (US$360m) in 2013, the report showed.
The Kingdom also posted the second biggest insurance premiums in the Gulf Cooperation Council (GCC) in 2014 of US$8.1bn, seeing growth of more than 20% due to premium rate rises in the medical and motor sectors.
The insurance industry also posted an eight-year Compound Annual Growth Rate (CAGR) of 20.3%.
A Moody’s analyst said that while Saudi Arabia’s insurance sector posted significant growth in 2014, there was still a high degree of untapped potential in the market because the country’s insurance penetration level was only 1.1%.
Moody’s rates Saudi’s insurers with sovereign rate of Aa3.
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