Saudi Insurance Sector- Quarterly

Transcription

1 Sector report KSA 2 Quarter ust Saudi Insurance Sector- Quarterly Q2- ust

2 Sector report KSA 2 Quarter ust Company Name The Company for Cooperative Insurance Cooperative Insurance Co. Cooperative Assurance Co. Al-Rajhi Company for Cooperative Insurance for Cooperative Insurance Co. Allied Cooperative Insurance Group for Cooperative Insurance Co. Cooperative Insurance Co. Cooperative Insurance Co. Al Sagr Cooperative Insurance Co. Malath Cooperative Insurance Co. Saudi Takaful Co. Cooperative Insurance Co. Sanad Cooperative Insurance Company Walaa Cooperative Insurance Co. Allianz Saudi Fransi Cooperative Insurance Co. Al-Ahlia Insurance Co. The Mediterranean and Gulf Insurance and Reinsurance Co. Saudi Indian Company for Cooperative Insurance Co. Saudi Arabian Cooperative Insurance Company Cooperative Insurance Co. for Cooperative Reinsurance Co. Arabia Insurance Cooperative Company ALAHLI TAKAFUL COMPANY AXA Cooperative Insurance Co. Weqaya Takaful insurance and reinsurance Company CHUBB Arabia Cooperative Insurance Co. Cooperative Insurance Co. Insurance Co. Amana Cooperative Insurance Co. Saudi Cooperative Insurance Co. arine Co. MetLife AIG ANB Cooperative Insurance Co. Aljazira Takaful Taawuni Co. Codes Sanad Walaa AXA-Cooperative Weqaya Takaful Alinma Tokio MetLife

3 Sector report KSA 2 Quarter ust GWP (Gross Written Premiums) in Q2- stood at SAR 8.8bn depicting a fall of 2.5% YoY. NWP (Net Written Premiums) in Q2- stood at SAR 7.2bn, depicting a fall of 1.4%YoY. NPE (Net Premium Earned) in Q2- at SAR 7.7bn showed a fall of 4.4%YoY. Health Sector accounted for 46% of the total GWP, followed by Motor which accounted for 38% of GWP Market Share with 23.9% market share in GWP was the biggest player, followed by BUPA at 21.%. Gainer/Loser: Alrajhi Takaful improved its market share from 5.6% in Q2- to 7.7% in Q2- an improvement of 21bps 1, followed by which showed an improvement of 84bps.insurance saw a drop of 36bps in its market share from 5.% to 1.4%. Retention Ratio: Industry retention ratio stood at 82.4% in Q2-, as compared to 81.4% in Q2-. BUPA Arabia has the highest retention ratio of 99.% in Q2-, at 96.2% had the second highest retention ratio. Gross Written Premium 14.5% % 26.7% 11.9% -2.2% % 24.6% 22.6% 22.7% 21.5% 2.4% 19.3% 16.7% 2.% -2.6% 15.5% -9.6% -2.1% 18.3% 12.2% 6 9.% 8.% , 1, 8, 6, 4, 2, Q1-212 Q1-212 Q2-212 Q2-212 Q3-212 Q3-212 Q4-212 Q4-212 Q1-213 Premium Ceded-Industry Q1-213 Q2-213 Q2-213 Q3-213 Q3-213 Q4-213 Q4-213 Q1-214 Q1-214 Q2-214 GWP - LHS Q2-214 Premium Ceded - LHS Q3-214 Q3-214 Q4-214 Q4-214 Q1-215 Q1-215 Q2-215 Q2-215 Q3-215 % Growth (YoY) - RHS Q3-215 Retention Ratio - RHS Q4-215 Q4-215 Q1 - Q1 - Q2 - Q2 - Q3 - Q3 - Q4 - Q4 - Q1 - Q1 - Q2 - Q2-32.% 28.% 24.% 2.% 16.% 12.% 8.% 4.%.% -4.% -8.% -12.% 9% 88% 86% 84% 82% 8% 78% 76% 74% 72% 7% GWP-Sector WIse NPE-Sector Wise Net Premium Earned 2% 6% 38% 8% Health Motor 46% Property/ Fire Accident and Liability Others 35% 3% 2% 1% 59% Health Motor Protection and Saving Accident and Liability Others 8, 7, 6, 19.4% 5, 4, 3, 2, 1, - Q % Q % Q % 17.8% Q4-212 Q % Q % Q % Q % Q % Q2-214 NPE 27.3% Q % Q % 27.2% 26.1% Q1-215 Q2-215 % Growth (YoY) - RHS Q % 23.8% 24.8% Q4-215 Q1 - Q2-6.8% Q3-2.2% Q4-35.% 3.% 25.% 2.% 15.% 1.% 5.% -2.4% -4.4%.% -5.% -1.% Q1 - Q2 - Top 5 and Bottom 5- Retention Ratio Gross Written Premium- Market Share Top 5 Gainers and Losers- GWP market Share % % 1% % 9% % 8% % 7% % 6% % 5% % 4% % 3% % 2% % 1% % Bupa Arabia 1 Basis Points Al Rajihi Takaful Amana Insurance Alinma Tokio M Gulf General 34.1% 3.3% 7.7% 9.9% 23.9% 21.% Bupa Arabia Al Rajihi Takaful Trade Union Others 5.5% 3.5% 1.5% -.5% -2.5% -4.5% -6.5% 2.1%.84%.76%.7%.5% -3.6% Malath -1.2% -.5% -.4% -.4% Source: Argaam, SAMA

4 Sector report KSA 2 Quarter ust GCP (Gross Claims Paid) in Q2- stood at SAR 6.5bn depicting a fall of 7.2% YoY. NCP (Net Claim Paid) in Q2- stood at SAR 5.8bn, depicting a fall of 8.3%YoY. Market Share BUPA Arabia with 25.2% market share in GWP paid the highest claims of SAR 1.65bn, followed by at 23.2% market share in claims. 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%. Malath insurance had the highest loss ratio of 114% in Q2-,followed by MedGulf at 86% in Q2-. Aljazira Takaful had the lowest loss ratio of 7.9%. MedGulf had the highest combined ratio of 177%, whereas Aljazira takaful had the lowest combined ratio of 27%. Gross Claims Paid 7,5 3% 31% Gross Claims Paid - LHS % Growth (YoY) - RHS 27% 24% 28% 6, 24% 25% 22% 24% 18% 23% 17% 4,5 19% 17% 13% 9% 3, 9% 9% 7% -1% 1,5-7, 6, 5, 4, 3, 2, 1, - Q % Q1-212 Q2-212 Q2-212 Q3-212 Net Claims Paid 24% 24% Q3-212 Q % Q4-212 Q % Q1-213 Q2-213 Q2-213 Q % 4% Q3-213 Q % Q4-213 Q % Q1-214 Q2-214 Q2-214 Q % 17% Q3-214 Q % Q4-214 Q1-215 Net Claims Paid - LHS 24% 23% 21% Q1-215 Q2-215 Q2-215 Q3-215 Q3-215 Q % Q4-215 Q1-17% Q1 - Q2 - % Growth (YoY) - RHS 19% Q2 - Q3-7% Q3 - -3% Q4 - -2%.2% -8.3% Q4 - Q1 - Q1 - -7% Q2 - Q2-35% 3% 25% 2% 15% 1% 5% % -5% 7% 65% 6% 55% 5% 45% 4% 35% 3% 25% 2% 15% 1% 5% % -5% -1% -15% Claims Market Share-Company wise Claims Market Share-sector wise 2% 1% 1% Health 23.9% 34.1% 33% Motor Protection and Saving 63% 21.% Others Property/ Fire 3.3% 7.7% 9.9% Others Others Claims Paid-Company wise IN MN SAR AXA MetLife AIG Alarabi Q2 - Q2 - Loss Ratio Combined Ratio 12% 1% 8% 6% 4% 2% % MetLife AXA Walaa Q2 - Q2-18% 16% 14% 12% 1% 8% 6% 4% 2% % MetLife AIG Alarabi AXA Q2 - Q2 - Source: Argaam, SAMA, AlJazira Capital

5 Sector report KSA 2 Quarter ust Net income for the sector stood at SAR 197.9mn in Q2-, as compared to SAR 431.9mn in Q2-, depicting a fall of 54.2%. On a QoQ basis net income showed a decline of 37.9%. with net income of SAR 23.9mn, showed a jump of.8%yoy and 61.9% QoQ. Net Income In MN SAR 1,1 7 3 (1) (5) (49) (117) 3 (41) (31) showed the highest surplus, from its insurance operations, at SAR 28.4mn, depicting a fall of 5.8%YoY and a QoQ jump of 49.2%. showed the highest investment income of SAR 61.2mn in the sector, registering growth of 36.3%YoY and 77.%QoQ. (9) (1,3) 15 Q1-212 Q2-212 Q3-212 Q4-212 Q1-213 Net Income-Company wise Q2-213 (1,159) Q3-213 Q4-213 Q1-214 Q2-214 Q3-214 Q4-214 Q1-215 Q2-215 Q3-215 Q4-215 Q1 - Q2 - Q3 - Q4 - Q1 - Q2 - Aljazira takaful showed the highest Operating and net margins at 3.1% and 34.9%, respectively. posted the highest ROE of 35.6% Co-Operative posted the highest ROA of 1.%. In Mn SAR AXA- MetLife AIG Alarabi Operating Margins-Highest 1 Net Margins-Highest 1 Surplus From Insurance Operations 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Jazira Amana Chubb Takaful Insurance Arabia Sagr Arabian Walaa Gulf Shield Union 4.% 35.% 3.% 25.% 2.% 15.% 1.% 5.%.% Jazira Amana Takaful Chubb Arabia Sagr Arabian Gulf ShieldGeneral Saudi Re In Mn SAR AXA MetLife AIG Alarabi ROE-Top 5 /Bottom 5 ROA-Top 5/ Bottom 5 Investment Income 4% 2% % -2% -4% -6% -8% MetLife AIG Malath 1.% 5.%.% -5.% -1.% -15.% MetLife In Mn SAR AXA- MetLife AIG Alarabi Source: Argaam

6 Sector report KSA 2 Quarter ust United Cooperative Assurance had the lowest PE of 8.3x, followed by with a PE of 8.5x. for Cooperative Reinsurance Co has the lowest PB of.8x, followed by Sagr insurance with a PB of 1.4x Only 7 companies gave out dividends, SAGR insurance had the highest dividend yield of 7.4% followed by with a dividend yield of 5.4% Lowest PE Walaa Tadawul Insurance Index- 1 Yr Performance Yr Performance Lowest PB Jun Jul Sep Oct Nov Dec Jan Feb Mar Apr May Jun TASI (LHS) Insurance Sector (RHS) 3 3 Nov Feb Insurance Sector (LHS) May (RHS) AXA BUPA-1 Yr Performance Alrajhi Takaful-1 Yr Performance Highest Dividend Yield Nov Feb Insurance Sector (LHS) May Bupa (RHS) Nov Insurance Sector (LHS) Feb May Alrajhi takaful (RHS) % 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% 7.4% 5.4% 4.7% 1.7% 1.4% Medgulf-1 Yr Performance Walaa-1 Yr Performance Top 5 Companies-Market Cap Nov Insurance Sector (LHS) Feb May Medgulf (RHS) Nov Feb Insurance Sector (LHS) May WALAA (RHS) In Mn SAR 12, 1, 8, 6, 4, 2, - AlRajhi Takaful Source: Tadawul, Bloomberg, prices as of 13 of June

7 Sector report KSA 2 Quarter ust APPENDIX 1 GWP YoY %Increase QoQ %Increase NWP YoY %Increase QoQ %Increase Q2- Q1- Q2- Q2- Q1- Q2- Q2- Q1- Q2- NPE YoY %Increase 2,135 2,28 2,14-1.5% 3.7% 1,725 1,885 1, % -6.4% 1,719 1,76 1, % 4.1% % -11.4% % -1.7% % 14.5% % 13.9% % 198.2% % -1.5% 56 1, % -38.6% 486 1, % -39.7% % 9.4% % -44.3% % -56.3% % 38.2% % 25.1% % NM* % NM* 1,828 2,253 1, % -18.% 1,817 2,236 1,832.8% -18.1% 1,864 1,876 1,99 2.4% 1.8% % -31.1% % -23.8% % -4.2% % -18.4% % -2.% % 11.9% %.4% % -17.2% % 53.4% % -67.9% % -69.9% % 12.1% % -42.7% % -43.4% % -12.6% % 26.% % 3.7% % 2.3% Walaa % -27.4% % -3.1% % 4.8% % -24.2% % -46.8% % 12.5% % 1.6% % 3.1% % 9.3% % 1.8% % 2.2% % -4.7% % -49.% % -52.% % -12.1% % -23.1% % -9.9% % 26.5% % -6.3% % -48.8% % -2.4% % -5.9% % -42.4% % 31.9% % -73.5% % -79.4% % -2.1% % -38.8% % -39.% % 4.7% % -5.8% % -68.% % 3.2% AXA-Cooperative % -69.5% % -67.4% % 4.6% % -42.7% % -42.1% % 9.7% % -43.5% % -41.5% % 21.2% % -69.% % -69.1% % 3.3% % -3.1% % -32.5% % -22.8% % 35.2% % 36.6% % 12.9% % -.8% % -64.8% % 2.1% MetLife % -14.8% % -28.% % 18.3% % 142.5% % 456.8% % 16.9% Total 9,19 11,499 8, % -23.6% 7,344 9,894 7,24-1.4% -26.8% 8,19 7,41 7, % 3.6% QoQ %Increase Source: Argaam, *NM: Not meaningfull

8 Sector report KSA 2 Quarter ust APPENDIX 2 Gross Claims Paid YoY %Increase QoQ %Increase Net Claims Paid YoY %Increase QoQ %Increase Q2- Q1- Q2- Q2- Q1- Q2- MetLife % -2.4% % 9.9% % -77.3% % -36.3% 1,361 1,432 1, % 6.1% 1,36 1,48 1, % 2.6% % -19.4% % -5.8% % -4.5% % -4.8% % 9.4% % 14.7% % 8.6% % 22.9% Walaa % -.7% % 5.% % -3.7% % -21.% % 38.3% % -29.7% % 4.6% % -3.% % 4.2% % -15.% % 16.9% % 36.% % 112.6% % -41.8% % -12.% % 33.9% % -16.7% % -17.6% % -1.2% % 2.3% % 7.6% % -14.1% % -23.7% % -26.6% % -6.3% % 14.5% % -47.4% % -47.8% AXA-Cooperative % -6.8% % 5.8% % 22.% % -3.1% % 19.4% % -3.3% % 56.3% % 73.9% % 28.7% % -13.8% % -43.9% % -7.7% 1,59 1,636 1, %.7% 1,511 1,669 1,522.7% -8.8% % -13.6% % 56.1% % 128.9% % -3.% % 24.1% % 4.2% % 28.4% % 7.7% % -66.4% % 1.6% Total 7,38 6,428 6, % 1.6% 6,344 5,918 5, % -1.7% Source: Argaam, *NM: Not meaningfull

9 Sector report KSA 2 Quarter ust APPENDIX 3 Net income Before Zakat YoY %Increase QoQ %Increase Net Income YoY %Increase QoQ %Increase Q2- Q1- Q2- Q2- Q1- Q2- MetLife AIG Alarabi (7.6) (6.9) (3.2) -57.3% -52.8% (7.6) (7.4) (3.8) -5.5% -48.9% % 21.9% % 15.3% % 55.2% % 61.9% (129.6) % -43.2% (131.5) % -52.% (19.7) (93.) (417.3) 22.1% 348.9% (21.6) (94.9) (44.) % 363.9% % -11.6% % -15.7% % 14.% % 15.3% % 1.4% % 11.6% % 8.1% % 1.8% % -15.5% % -21.3% % 22.4% % 25.2% % -19.8% % -68.1% % -12.1% % -31.4% % 18.3% % 19.7% (5.) % 477.4% (5.3) % % % 34.8% % 35.9% % -29.3% % -58.8% % 211.3% % 36.2% % 21.3% % 42.4% % -51.1% % -53.9% (8.6) (4.6) (1.8) -79.1% -6.8% (8.) (4.6) (2.3) -71.3% -5.1% AXA-Cooperative % -8.9% % -13.8% 11.6 (.3) % % 8. (1.7) % -67.5% % -.8% % -.3% % -57.% % -54.4% (8.9) % 79.1% (12.5) % 142.3% % -19.8% % -2.8% % 297.3% % 69.3% % 36.1% % 79.5% % 7.% % 2.6% (5.5) (6.6) (3.5) -36.9% -47.% (6.1) (7.3) (4.1) -33.3% -43.8% % 2.5% % 21.5% (1.8) 1.5 (7.5) -3.9% % (1.8).5 (8.5) -21.2% % Total % -23.8% % -37.9% Source: Argaam, *NM: Not meaningfull

10 Sector report KSA 2 Quarter ust APPENDIX 4 Market Cap PE PB Dividend Yield 11, % , , , % % % % NEG , NEG 1.7-1,23. NEG HIGH HIGH % AXA-Cooperative NEG NEG MetLife AIG Alarabi NEG 3.1-1, % Sector 42, Source: Argaam, *NM: Not meaningfull, prices as of 13 of June

11 RESEARCH DIVISION Head of Research Talha Nazar Analyst Sultan Al Kadi Analyst Jassim Al-Jubran Analyst Waleed Al-Jubayr Analyst Muhanad Al-Odan BROKERAGE AND INVESTMENT CENTERS DIVISION General Manager Brokerage Services & sales Alaa Al-Yousef AGM-Head of international and institutional brokerage Luay Jawad Al-Motawa AGM- Head of Western and Southern Region Investment Centers Mansour Hamad Al-Shuaibi AGM-Head of Sales And Investment Centers Central Region Sultan Ibrahim AL-Mutawa AGM-Head of Qassim & Eastern Province Abdullah Al-Rahit RESEARCH DIVISION RATING TERMINOLOGY 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. 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