Twenty-five insurance companies out of 33 listed on the Saudi stock market have achieved a new growth in profitability for the first half of 2017.
However, the performance of only eight insurance companies has declined, including five companies that suffered losses during the first half of this year.
The 25 companies constitute around 75.7 percent of the firms listed in the insurance sector in the Saudi stock market, which reflects the size of growth in the insurance market in the country, suggesting that the Kingdom is heading strongly towards stimulating and regulating the insurance sector to play its vital role in diversifying the economy.
In this context, the financial results of the Saudi insurance companies show that in the first half of this year they achieved a net profit of about SR660 million ($176 million). The results of the firms in general were positive, with the exception of five companies that suffered losses.
These positive developments come as Saudi Arabia’s plans to provide more jobs in the insurance sector have begun to come into effect.
Companies operating in the insurance sector will submit details on a monthly basis on the jobs that were settled to the Saudi Arabian Monetary Agency (SAMA), according to information received by Asharq Al-Awsat.
Commenting on the growth in the net profit of 25 Saudi insurance companies, the economic advisor specialized in the insurance sector, Iyad al-Lahibi, said that maturity of the administrations of Saudi insurance companies has contributed significantly to the improvement of the performance of companies financially and operationally.
"There are huge leaps in the level of legislation enacted by SAMA, which also clearly contributed to the organization of the insurance sector, making it an added value for the local economy."
The Saudi economy is already moving towards diversification and not relying on oil, Lahibi told Asharq Al-Awsat.
"By 2030, the insurance sector will be one of the most important sectors that contribute to the diversification of the Saudi economy, and we have already started to move towards achieving this goal,” he said.
Lahibi stressed that the Saudi insurance sector is prepared to be an independent industry contributing to the achievement of the Kingdom's Vision 2030 for the post-oil era.
He pointed out that the Saudi economy has proven its strength and firmness against all the global economic challenges it faces, which helps the insurance sector to expand and increase its contribution to the national output of the local economy.