Saudi- SR1bn injected into 12 insurance firms' reserves

Twelve listed insurance companies have allocated SR1 billion to boost their technical reserves.

The funds account for 20 percent of their capital outlay, amounting to SR5.2 billion, an analytical study prepared by Al-Eqtisadiah daily said.
The Cooperative Insurance Company (Tawaniya) captured the biggest ratio of fund increases to boost its reserve portfolio to SR547 million, or 55 percent of its capital (SR1 billion), followed by Salama Insurance at SR42.9 million (43 percent of its capital), the study said.

The National Insurance boosted its reserves with SR24 million, or 24 percent of its capital (SR100 million), followed by MedGulf Insurance at SR182 million, or 18 percent of capital (SR1 billion), Wafa Insurance at SR12.4 million, or 12.4 percent of capital (SR100 million), Al-Rajhi Takaful at SR23 million, Saudi Reinsurance at SR96 million, or 10 percent of capital (SR1 billion), the report said.

The remaining five insurance companies have allocated funds to boost their respective reserves as follows: Solidarity Takaful SR49.3 million, or 9 percent of capital (SR555 million), Malath Insurance SR20.2 million, or 7 percent of capital (SR300 million), Al-Alamiya Insurance SR12.1 million, or 6 percent of capital (SR200 million), Walaa Insurance SR5.9 million, or 3 percent of capital (SR200 million), and Saudi Enaya SR3.5 million, or 1 percent of capital (SR400 million), the report said.

Insurance experts said the increased provisions will negatively affect profits, and financial position in general, of the insurance firms during the fourth quarter of 2013 due to increased claims on them.
However, the provisions will allow the firms to upgrade efficiency and meet future obligations, the report said.

Source Arab News