September 2018 Saudi Insurance Sector- Quarterly Q2-2018

Head of Research Talha Nazar +966 11 2256250 [email protected] September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

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 September 2018 Insurance Sector Report Sector report | KSA | Q2-2018 Gross Written Premium GWP (Gross Written Premiums) in Q2-18 stood at SAR 7.55bn depicting a fall of 14.1% Y/Y. 30.2% 11.9% -2.2% 12000 26.7% -2.93% 32.0% 24.2% 24.6% 28.0% 22.6% 22.7% 21.5% 10000 2.0% NWP (Net Written Premiums) in Q2-18 stood at SAR 6.3bn, depicting a fall of 13.7%Y/Y. 18.3% 19.3% 16.7% -2.6% 24.0% 15.5% -9.5% -2.1% 20.0% 8000 -7.95% 0.77% 12.2% 16.0% NPE (Net Premium Earned) in Q2-18 at SAR 7.3bn showed a decline of 4.4%Y/Y. 6000 12.0% 8.0% 4000 4.0% 0.0% In Q1-18, Health Sector accounted for 50.3% of the total GWP, followed by Motor which 2000 -4.0% -8.0% accounted for 32.7% of GWP 0 -12.0%

Market Share Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 GWP - LHS % Growth (YoY) - RHS BUPA with 26.8% market share in GWP was the biggest player, followed by Tawuniya at 23.3%. Premium Ceded-Industry 12,000 90% 88% Gainer/Loser: Bupa Arabia improved its market share from 21.0% in Q2-17 to 26.8% in 10,000 86% 84% 8,000 Q2-18 an improvement of 574bps , followed by Wataniya which showed an improvement of 82% 6,000 80% 124bps. Wataniya improved its market share from 0.7% in Q2-17 to 2.2% in Q2-18. 78% 4,000 76% 74% 2,000 Retention Ratio: Industry retention ratio stood at 82.7% in Q2-18, as compared to 82.4% in 72% Q2-17. BUPA has the highest retention ratio of 99.0% in Q2-18, Al Rajhi Takaful at 96.2% 0 70%

had the second highest retention ratio. Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 Premium Ceded - LHS Retention Ratio - RHS

GWP-Sector WIse NPE-Sector Wise Net Premium Earned

3% 8% Health 2% Health 32.1% 19.9% 8,000 -4.4% 2.3% 0.8% 35.0% 23.8% 24.8% 6.8% 2.2% 1.4% 3% 26.9% 27.3% 27.2% 26.1% -2.4% -4.4% 30.0% 7,000 23.9% 24.4% 25.1% 6% 20.9% 25.0% 6,000 17.8% Motor Motor 16.9% 20.0% 5,000 15.0% 4,000 32% 10.0% Property/ Fire Protection and Saving 3,000 5.0% 2,000 0.0% 50% 61% 33% 1,000 -5.0% Protection and Saving Accident and Liability - -10.0%

Others Others Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 NPE % Growth (YoY) - RHS Top 5 and Bottom 5- Retention Ratio Gross Written Premium- Market Share Top 5 Gainers and Losers- GWP market Share 100.0% Bupa Arabia Tawuniya 8.0% 90.0% 5.7% 80.0% 6.0% 70.0% 26.8% 4.0% 60.0% 34.6% 50.0% 2.0% 1.24% 1.12% 0.8% 0.7% MEDGULF InsuranceWafa Tawuniya 40.0% UCA MetLife AIG Alarabi Al Rajihi Takaful MEDGULF 0.0% 30.0% -1.0% -0.7% -0.7% 20.0% -2.0% -1.7%

10.0% SAICO -4.0% Wataniya 0.0% 3.3%

23.3% Bupa Arabia ATC UCA 3.7% -6.0% Enaya Bupa Arabia Chubb Arabia Al Rajihi Takaful Malath Salama

Walaa Insurance -6.2% Gulf General Al Rajihi Takaful 8.5% Walaa Insurance Others

Wafa Insurance -8.0% Source: Argaam, SAMA 1Basis Points September 2018 Insurance Sector Report Sector report | KSA | Q2-2018 Gross Claims Paid GCP (Gross Claims Paid) in Q2-18 stood at SAR 6.6bn depicting a jump of 0.9% Y/Y. Gross Claims Paid - LHS % Growth (YoY) - RHS 35% 7,500 30% 31% 28% 27% 24% 25% 30% 24% 23% NCI (Net Claim Incurred) in Q2-18 stood at SAR 5.8bn, depicting a rise of 5.5%Y/Y. 6,000 18% 25% 19% 17% 20% 4,500 13% 9% 15% Market Share 9% 9% 7% 7% 10% 3,000 5% 0.9% 5% -1% 1,500 -3% 0% Tawuniya with 29.9% market share in GCP the highest claims of SAR 1.97bn, followed by -7% -5% BUPA at 24.9% market share in claims. - -10%

Aljazira Takaful paid the lowest claims of SAR 2.2mn. Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018

In Q1-18, Health sector accounted for the highest share in claims at 67.4%, followed by Net Claims Paid Net Claims Paid - LHS % Growth (YoY) - RHS 7,000 66% 70% Motor sector at 28.3%. 65% 60% 6,000 55% 50% 40% 45% 5,000 38% 40% Metlife had the highest loss ratio of 99% in Q2-18,followed by Tawuniya at 95.0% in Q2-18. 29% 25% 29% 35% 4,000 24% 23% 30% 21% 19.7% 17% 17% 17% 19% 25% 3,000 20% 7% 5.3% 15% Aljazira Takaful had the lowest loss ratio of 7.7%. 3.4% 5.5% 10% 2,000 -2% 0.2% 5% -7% 0% -13.2% -5% 1,000 -10% Aljazira Takaful had the lowest combined ratio of 29%. -15% - -20% Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018

Claims Market Share-Company wise Claims Market Share-sector wise Claims Paid-Company wise 2,500 2% 1% Health 2,000 Q2 - 2018 Q2 - 2017 23% Bupa Arabia Tawuniya 29.9% 1,500 28% Motor 1,000

2% MEDGULF Al Rajihi Takaful 500

Protection and Saving IN MN SAR 4% - ATC UCA Buruj AICC ACIG Enaya

67% SAICO Al Ahlia 8% Others Malath Accident and Liability Salama Saudi Re Solidarity Wataniya Tawuniya Allianz SF Gulf Union Al Alamiya MEDGULF Trade Union Bupa Arabia Gulf General Chubb Arabia Jazira Takaful SABB Takaful

24.9% Arabian Shield

8% Sagr Insurance Alinma Tokio M Wafa Insurance Al Rajihi Takaful Walaa Insurance Malath Insurance AXA-Cooperative AXA Others Amana Insurance MetLife AIG Alarabi

Loss Ratio Combined Ratio 120.0% 200% Q2 - 2017 Q2 - 2018 180% Q2 - 2018 Q2 - 2017 100.0% 160% 140% 80.0% 120% 60.0% 100% 80% 40.0% 60% 40% 20.0% 20% 0% 0.0% AXA ATC UCA Buruj AICC AXA ATC ACIG UCA Buruj AICC Enaya ACIG SAICO Enaya Al Ahlia Salama SAICO Al Ahlia Salama Saudi Re Solidarity Wataniya Tawuniya Allianz SF Saudi Re Solidarity Wataniya Tawuniya Gulf Union Allianz SF MEDGULF Al Alamiya MEDGULF Al Alamiya Bupa Arabia Gulf General Trade Union Bupa Arabia Gulf General Chubb Arabia Trade Union Jazira Takaful SABB Takaful Arabian Shield Chubb Arabia Jazira Takaful SABB Takaful Sagr Insurance Alinma Tokio M Arabian Shield Wafa Insurance Sagr Insurance Alinma Tokio M Wafa Insurance Al Rajihi Takaful Walaa Insurance Al Rajhi Takaful Malath Insurance Amana Insurance Walaa Insurance Malath Insurance Amana Insurance MetLife AIG Alarabi MetLife AIG Alarabi Source: Argaam, SAMA, AlJazira Capital September 2018 Insurance Sector Report Sector report | KSA | Q2-2018 Net Income Net income for the sector stood at SAR 350.7mn in Q2-18, as compared to SAR 219.9mn in 1,100 894 Q2-17, depicting a jump of 59.5%Y/Y. 789 757 700 548 456 474 406 451 364 310 215 270 287 300 172 135.7 Net income before Zakat stood at SAR 451.0mn, depicting a jump of 45.5%. 46 (1,141) 11 28 (100)

In MN SAR (74) Bupa Arabia with net income of SAR 156.3mn, showed a rise of 23.1%Y/Y. (500) 373 (900)

Bupa showed the highest surplus, from its insurance operations, at SAR 168.9mn, depicting (1,300) a rise of 74.1%Y/Y. Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 2016 Q4 - 2016 Q1 - 2017 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 Net Income-Company wise Tawuniya showed the highest investment income of SAR 100.8mn in the sector, registering 150.00 a rise of 57.9%Y/Y. 100.00

Aljazira Takaful showed the highest Operating margins at 3.5%, and net margin at 39.9%. 50.00 0.00 In Mn SAR In ATC UCA Buruj AICC ACIG

Rajhi takaful posted the highest ROE of 31.5% Enaya SAICO Al Ahlia -50.00 Salama Saudi Re Solidarity Wataniya Tawuniya Allianz SF Al Alamiya Gulf Union Trade Union Bupa Arabia MEDGULF Gulf General Chubb Arabia Jazira Takaful -100.00 SABB Takaful Arabian Shield Arabian Sagr Insurance Al Rajihi Takaful Walaa Insurance Alinma Tokio M Wafa Insurance

Walaa posted the highest ROA of 7.7 %. Malath Insurance AXA-Cooperative Amana Insurance MetLife AIG Alarabi

Operating Margins-Highest 10 Net Margins-Highest 10 Surplus From Insurance Operations

4.0% 45.0% 180 160 3.5% 40.0% 140 120 3.0% 35.0% 100 30.0% 80 2.5% 60 25.0% 40 2.0% 20 20.0%

In Mn SAR 0 1.5% 15.0% -20 ATC UCA Buruj AICC ACIG

1.0% Enaya SAICO Al Ahlia

10.0% Salama Saudi Re Solidarity Wataniya Allianz SF 0.5% 5.0% Al Alamiya MEDGULF Trade Union Bupa Arabia Gulf General Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield

0.0% 0.0% Sagr Insurance Al Rajihi Takaful Alinma Tokio M Wafa Insurance Walaa Insurance Malath Insurance AXA-Cooperative Jazira Buruj Chubb Arabian Walaa Trade Solidarity ATC Sagr AXA Jazira Buruj Solidarity Chubb Arabian Walaa Trade ATC Wataniya Malath Amana Insurance

Takaful Arabia Shield Union Takaful Arabia Shield Union MetLife AIG Alarabi

ROE-Top 5 /Bottom 5 ROA-Top 5/ Bottom 5 Investment Income

40.0% 10.0% 100

20.0% 5.0% 80

0.0% 0.0% 60 -20.0% 40 -5.0% -40.0% 20 -10.0% -60.0% In Mn SAR 0

-15.0% ATC UCA Buruj AICC -80.0% ACIG Enaya SAICO Al Ahlia Salama Saudi Re Solidarity Wataniya Tawuniya -20.0% Allianz SF MEDGULF -100.0% Al Alamiya Bupa Arabia Gulf General Trade Union Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield Sagr Insurance Sagr Alinma Tokio M Wafa Insurance

-120.0% -25.0% Al Rajihi Takaful Al Rajihi Walaa Bupa Salama Trade UCA Tawuniya MetLife Enaya Wafa Walaa Insurance

Walaa Arabian Buruj Solidarity Bupa Alinma Tawuniya MetLife Wafa Enaya Malath Insurance AXA-Cooperative Amana Insurance

Union Shield MetLife AIG Alarabi Source: Argaam September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

Lowest PE Arabian Shield had the lowest PE of 6.5x, followed by Trade Union with a PE of 7.0x. 14.0 Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.7x, followed by UCA 12.0 10.0 with a PB of 1.1x 8.0 6.0 Only 4 companies gave out dividends, Jazira Takaful had the highest dividend yield of 3.7%. 4.0 2.0 0.0 Arabian Trade Union WALAA Buruj Salama CHUBB Wataniya AlRajhi Al-Ahlia SAICO Shield Tadawul Insurance Index- 1 Yr Performance Tawuniya-1 Yr Performance Lowest PB 9000 5500 9000 115 1.6 5300 105 1.4 8500 5100 8500 1.2 4900 95 1.0 8000 4700 8000 85 4500 0.8 7500 75 7500 4300 0.6 4100 65 7000 3900 7000 0.4 55 3700 0.2 6500 3500 6500 45 9/10/2017 12/10/2017 3/10/2018 6/10/2018 0.0 9/10/2017 12/10/2017 3/10/2018 6/10/2018 Saudi Re U C A SAICO Sagr Gulf Union Arabian Shield Solidarity Gulf General CHUBB Buruj TASI (LHS) Insurance Sector (RHS) TASI (LHS) Tawuniya (RHS)

BUPA-1 Yr Performance Alrajhi Takaful-1 Yr Performance Highest Dividend Yield 9000 125 9000 90 4.0% 3.7% 3.6% 120 85 3.5% 8500 115 8500 80 3.0% 110 75 3.0% 8000 105 8000 70 2.5% 100 65 2.1% 2.0% 7500 95 7500 60 90 55 1.5% 7000 85 7000 50 1.0% 80 45 6500 75 6500 40 0.5% 9/10/2017 12/10/2017 3/10/2018 6/10/2018 9/10/2017 12/10/2017 3/10/2018 6/10/2018 0.0% Jazira Takaful Sagr Insurance ATC Bupa Arabia TASI (LHS) Bupa (RHS) TASI (LHS) Alrajhi takaful (RHS) Medgulf-1 Yr Performance Walaa-1 Yr Performance Top 5 Companies-Market Cap 9000 35 9000 35 12,000

8500 30 8500 10,000 30 8000 25 8000 8,000

7500 20 7500 6,000

25 In Mn SAR 4,000 7000 15 7000 2,000 6500 10 6500 20 9/10/2017 12/10/2017 3/10/2018 6/10/2018 9/10/2017 12/10/2017 3/10/2018 6/10/2018 - TASI (LHS) Medgulf (RHS) TASI (LHS) WALAA (RHS) Bupa Arabia Tawuniya AlRajhi Takaful Al Alamiya WALAA September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

APPENDIX 1 YoY QoQ YoY QoQ YoY QoQ GWP NWP NPE %Increase %Increase %Increase %Increase %Increase %Increase Q2-2017 Q1-2018 Q2-2018 Q2-2017 Q1-2018 Q2-2018 Q2-2017 Q1-2018 Q2-2018 Tawuniya 2,104 2,096 1,756 -16.6% -16.2% 1,758 1,903 1,397 -20.5% -26.6% 1,759 1,832 1,883 7.0% 2.8% Salama 202 246 224 11.0% -8.9% 194 235 213 9.7% -9.1% 113 168 181 60.3% 7.9% UCA 251 104 89 -64.7% -14.7% 61 27 28 -54.2% 3.3% 146 52 37 -75.0% -30.0% Al Rajhi Takaful 680 1,016 638 -6.2% -37.2% 649 985 611 -5.9% -38.0% 407 686 719 76.5% 4.8% Al Alamiya 48 101 56 17.1% -44.1% 26 63 31 22.8% -50.0% 50 46 39 -22.5% -14.4% ACIG 102 116 114 11.6% -1.6% 88 105 103 17.4% NM* 110 87 82 -24.9% NM* Bupa Arabia 1,848 2,489 2,020 9.3% -18.9% 1,832 2,472 1,992 8.8% -19.4% 1,939 1,909 1,937 -0.1% 1.4% Arabian Shield 165 241 93 -43.5% -61.2% 114 148 63 -44.3% -57.3% 102 122 106 3.3% -13.5% Buruj 144 98 84 -41.6% -13.9% 133 89 69 -47.9% -21.7% 100 117 131 30.7% 11.6% Sagr Insurance 93 64 78 -16.7% 21.0% 68 58 62 -9.2% 5.6% 95 42 58 -39.1% 36.6% Malath Insurance 144 372 130 -9.5% -65.0% 127 345 104 -18.0% -69.9% 351 227 220 -37.3% -3.2% Solidarity 21 72 38 84.2% -47.1% 18 65 36 101.7% -45.7% 52 43 40 -23.7% -8.0% Trade Union 289 232 221 -23.5% -4.9% 245 205 191 -22.0% -6.6% 193 189 176 -9.0% -6.9% Walaa Insurance 218 311 248 14.0% -20.1% 173 247 137 -20.9% -44.5% 161 200 196 21.7% -2.2% Allianz SF 227 298 225 -1.0% -24.7% 134 234 108 -19.9% -54.0% 130 166 160 23.3% -3.6% Al Ahlia 46 34 43 -7.1% 25.9% 43 30 39 -9.6% 28.2% 43 37 37 -15.5% -1.4% MEDGULF 869 414 278 -68.0% -32.8% 702 349 245 -65.1% -29.8% 714 586 565 -20.9% -3.7% Wafa Insurance 119 88 23 -80.2% -73.4% 73 52 14 -80.5% -72.5% 126 101 98 -22.4% -3.3% SABB Takaful 45 39 36 -19.5% -5.6% 34 28 27 -19.5% -1.0% 32 34 33 3.0% -4.3% SAICO 149 371 213 42.8% -42.6% 105 219 170 62.6% -22.3% 124 130 142 14.6% 9.1% Gulf Union 79 80 50 -36.5% -37.5% 53 44 32 -38.8% -27.1% 23 56 54 130.2% -4.1% Saudi Re 121 528 62 -48.6% -88.2% 89 492 43 -51.4% -91.3% 119 143 150 26.0% 5.0% AICC 69 117 77 12.4% -33.9% 46 85 57 23.0% -32.9% 70 73 54 -23.8% -26.4% ATC 58 123 49 -15.8% -60.1% 10 75 5 -52.8% -93.5% 21 21 16 -24.3% -24.3% AXA-Cooperative 220 675 184 -16.3% -72.7% 195 589 168 -14.0% -71.5% 265 323 300 13.5% -6.9% Chubb Arabia 48 99 53 9.0% -46.7% 28 51 25 -9.0% -50.5% 29 27 26 -11.1% -2.7% Gulf General 46 94 73 57.3% -23.2% 23 47 45 91.1% -4.9% 34 29 23 -31.8% -19.5% Wataniya 83 268 164 99.2% -38.7% 42 142 113 166.3% -20.6% 65 74 73 11.9% -1.7% Amana Insurance 16 36 35 115.4% -3.6% 6 21 21 249.3% -0.6% 58 14 11 -81.6% -24.1% Enaya 66 87 51 -23.5% -41.9% 65 83 36 -44.1% -56.0% 14 34 52 270.2% 55.5% Alinma Tokio M 103 142 101 -2.0% -29.0% 25 109 40 58.5% -63.5% 33 32 35 4.0% 9.1% MetLife AIG Alarabi 88 101 26 -70.6% -74.3% 63 76 16 -74.7% -78.9% 42 55 69 66.1% 25.5% Jazira Takaful 32 14 16 -49.3% 11.9% 13 2 4 -72.0% 57.9% 7 9 7 -2.9% -18.9% Total 8,794 11,166 7,549 -14.2% -32.4% 7,235 9,676 6,246 -13.7% -35.4% 7,529 7,665 7,706 2.4% 0.5% Source: Argaam, *NM: Not meaningfull September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

APPENDIX 2

Gross Claims Paid YoY %Increase QoQ %Increase Net Claims Paid YoY %Increase QoQ %Increase

Q2-2017 Q1-2018 Q2-2018 Q2-2017 Q1-2018 Q2-2018 Tawuniya 1,519 2,206 1,970 29.7% -10.7% 1,449 1,581 1,647 13.7% 4.2% Salama 112 145 129 15.1% -10.9% 129 136 139 8.3% 2.4% UCA 64 54 0 -100.0% -100.0% (4) 15 2 -153.4% -85.1% Al Rajhi Takaful 559 556 515 -7.9% -7.3% 583 591 588 1.0% -0.4% Al Alamiya 23 20 21 -7.2% 7.4% 12 9 13 6.0% 45.4% ACIG 73 75 76 4.2% 0.9% 59 69 70 18.2% 0.8% Bupa Arabia 1,647 1,341 1,642 -0.4% 22.4% 1,522 1,728 1,538 1.0% -11.0% Arabian Shield 90 68 75 -16.2% 11.4% 70 64 67 -4.5% 5.3% Buruj 61 67 62 1.1% -7.4% 62 62 43 -30.7% -30.9% Sagr Insurance 42 50 47 10.3% -5.4% 28 45 47 70.1% 3.1% Malath Insurance 264 169 130 -50.8% -23.2% 188 90 96 -49.0% 6.4% Solidarity 26 21 26 1.5% 25.0% 16 8 21 28.9% 147.7% Trade Union 143 124 115 -19.8% -7.4% 118 119 114 -2.8% -4.2% Walaa Insurance 125 120 116 -7.4% -3.5% 123 122 126 1.7% 2.9% Allianz SF 147 158 130 -11.0% -17.5% 129 123 111 -13.8% -9.5% Al Ahlia 24 26 27 12.5% 2.5% 28 29 24 -14.9% -17.4% MEDGULF 633 553 558 -11.9% 0.8% 532 442 367 -31.0% -17.1% Wafa Insurance 149 119 99 -33.2% -16.1% 76 80 40 -46.6% -49.3% SABB Takaful 15 6 16 4.1% 175.5% 25 27 29 14.6% 9.0% SAICO 135 110 95 -30.1% -14.3% 88 102 116 31.8% 13.0% Gulf Union 47 49 - -100.0% -100.0% 35 28 29 -18.8% 1.4% Saudi Re 82 85 92 12.5% 9.2% 92 113 93 1.6% -17.0% AICC 63 47 48 -24.3% 2.1% 42 33 35 -16.0% 7.8% ATC 35 97 27 -21.3% -72.0% 3 75 7 131.8% -91.1% AXA-Cooperative 211 175 266 25.8% 51.9% 267 237 239 -10.6% 0.8% Chubb Arabia 29 14 12 -59.0% -17.3% 9 8 8 -10.7% -6.8% Gulf General 35 41 26 -26.7% -36.0% 13 14 15 13.6% 5.9% Wataniya 57 65 62 7.5% -4.8% 48 44 47 -1.7% 7.4% Amana Insurance 22 10 10 -53.8% 2.6% 9 4 4 -58.1% -4.8% Enaya 23 68 71 206.4% 3.7% 20 119 47 128.4% -60.7% Alinma Tokio M 30 35 46 52.0% 31.1% 20 37 34 68.5% -7.4% MetLife AIG Alarabi 46 74 81 75.2% 8.4% 42 75 51 21.4% -32.7% Jazira Takaful 2 4 2 36.6% -38.2% 0 0 0 -47.3% -5.4% Total 6,534 6,750 6,592 0.9% -2.4% 5,834 6,230 5,807 -0.5% -6.8% Source: Argaam, *NM: Not meaningfull September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

APPENDIX 3

Net income Before Zakat YoY %Increase QoQ %Increase Net Income YoY %Increase QoQ %Increase

Q2-2017 Q1-2018 Q2-2018 Q2-2017 Q1-2018 Q2-2018 MetLife AIG Alarabi (3.2) (15.6) (1.3) -60.2% -91.7% (3.8) (16.1) (1.8) -53.2% -89.0% Jazira Takaful 8.9 7.3 6.5 -26.6% -11.3% 8.1 7.1 6.3 -22.4% -11.3% Tawuniya 248.8 41.9 38.3 -84.6% -8.7% 231.0 27.1 24.9 -89.2% -8.0% Malath Insurance 5.0 10.0 5.3 5.1% -47.2% 3.5 7.8 3.0 NM* -60.8% MEDGULF (417.3) (23.3) (8.6) -97.9% -62.9% (417.3) (25.1) (10.6) -97.5% -58.0% Allianz SF 7.8 9.7 9.6 22.5% -1.3% 6.0 8.1 7.4 22.3% -8.8% Salama 16.2 7.3 9.0 -44.1% 23.9% 14.9 5.8 7.5 -49.5% 30.1% Walaa Insurance 35.6 38.7 34.3 -3.5% -11.4% 32.2 34.8 30.4 -5.8% -12.7% Arabian Shield 22.3 13.1 6.7 -70.0% -48.7% 19.4 9.8 3.7 -80.9% -62.0% SABB Takaful 1.8 0.6 0.4 -78.3% -35.3% 0.6 (0.9) (1.1) -289.6% 20.7% SAICO 11.5 0.0 0.4 -96.4% 1117.6% 9.8 (2.1) (2.0) -120.1% -6.3% Wafa Insurance 2.9 (31.8) (10.7) -464.6% -66.5% 1.1 (32.8) (10.7) -1100.9% -67.5% Gulf Union 5.8 5.5 (10.7) -285.6% -296.4% 5.8 2.3 (10.7) -285.6% -575.6% ATC 11.1 7.9 7.4 -33.6% -6.4% 9.4 6.0 6.0 -36.1% -0.1% Al Ahlia 4.1 7.2 3.6 -13.0% -51.0% 3.4 6.3 3.1 -9.5% -50.7% ACIG 6.6 2.4 2.9 -55.6% 21.4% 6.1 1.9 (0.1) -102.2% -106.9% AICC 3.6 3.8 1.3 -64.1% -65.8% 1.6 2.5 (0.3) -117.1% -110.6% Trade Union 25.1 25.2 25.4 1.0% 0.9% 22.6 20.2 22.4 -1.1% 11.1% Solidarity 12.9 1.3 11.1 -14.0% 730.2% 13.1 7.6 9.6 -26.8% 26.0% Wataniya 7.7 16.7 7.9 3.4% -52.3% 6.9 15.4 6.4 -6.7% -58.3% Amana Insurance (1.8) (6.9) (0.3) -83.8% -95.8% (2.3) (6.2) (1.2) -48.7% -81.1% AXA-Cooperative 14.8 18.2 24.1 62.6% 32.2% 10.8 14.4 17.0 57.2% 18.2% Gulf General 11.3 0.0 (0.8) -107.2% -2347.2% 9.8 (1.2) (2.3) -123.1% 96.7% Buruj 27.8 22.9 16.1 -42.2% -29.9% 25.1 19.7 13.0 -48.3% -34.1% Al Alamiya 7.1 10.5 6.2 -13.0% -41.3% 3.9 10.5 1.3 -67.2% -87.8% Saudi Re 13.4 7.6 6.4 -52.0% -15.3% 9.4 4.6 3.3 -65.0% -28.6% UCA 27.4 (7.6) 3.1 -88.8% -140.5% 27.4 (9.1) 3.1 -88.8% -133.9% Bupa Arabia 145.8 9.3 178.9 22.7% 1813.4% 127.0 (13.2) 156.3 23.1% -1282.4% Sagr Insurance 6.9 9.3 1.3 -81.3% -86.0% 2.3 5.9 (2.2) -196.2% -137.6% Chubb Arabia 9.8 10.6 10.3 5.0% -3.5% 8.1 8.7 8.3 2.7% -4.5% Enaya (3.5) (103.3) 23.4 -774.1% -122.7% (4.1) (103.9) 22.8 -660.1% -122.0% Al Rajihi Takaful 41.1 41.4 52.9 28.7% 27.9% 36.4 37.6 48.5 33.0% 29.1% Alinma Tokio M (7.5) (4.4) (9.3) 24.5% 113.9% (8.5) (5.7) (10.7) 25.0% 87.0% Total 309.8 135.7 451.0 45.5% 232.3% 219.9 47.5 350.7 59.5% 638.3% Source: Argaam, *NM: Not meaningfull September 2018 Insurance Sector Report Sector report | KSA | Q2-2018

APPENDIX 4

Market Cap PE PB Dividend Yield

Tawuniya 6,437.50 M 2.9 - METLIFE AIG ANB 329.76 NM* 2.1 - Jazira Takaful 660.10 22.9 1.7 2.33% MALATH INSURANCE 622.00 NM* 1.3 - MEDGULF 684.00 NM* 1.5 - Allianz SF 471.60 12.6 1.8 - Salama 417.00 7.8 1.6 - WALAA 1,066.56 7.1 1.6 - Arabian Shield 549.60 6.5 1.3 - SABB Takaful 639.20 M 1.8 - SAICO 369.00 11.7 1.1 - WAFA Insurance 117.60 M 2.9 -- Gulf Union 187.50 19.1 1.2 -- ATC 404.98 13.1 1.7 2.65% Al-Ahlia 171.20 10.8 1.4 -- ACIG 326.00 27.3 2.3 -- AICC 527.35 43.4 2.1 -- Trade Union 605.00 7.0 1.5 -- Sagr Insurance 510.40 24.6 1.1 7.14% U C A 440.00 M 1.1 -- Saudi Re 565.38 17.7 0.7 -- Bupa Arabia 7,872.00 15.5 3.4 1.46% AlRajhi Takaful 2,140.00 10.6 3.1 -- CHUBB 388.00 9.6 1.4 -- AXA Cooperative 1,035.00 14.5 1.9 -- Gulf General 270.00 23.8 1.4 -- Buruj 615.00 7.6 1.4 1.62% Al Alamiya 1,384.00 36.8 3.7 -- Solidarity 414.00 14.2 1.3 -- Wataniya 482.00 10.5 2.0 -- Amana Insurance 228.76 714.9 2.1 -- Enaya 208.20 NM* 2.8 -- Alinma Tokio M 574.80 NM* 2.2 -- Sector 31,713.49 13.4 2.1 --

Source: Argaam, *NM: Not meaningful Head of Research Analyst Analyst Analyst Analyst Talha Nazar Sultan Al Kadi, CAIA Jassim Al-Jubran Waleed Al-Jubayr Muhanad Al-Odan +966 11 2256250 +966 11 2256374 +966 11 2256248 +966 11 2256146 +966 11 2256115 [email protected] [email protected] [email protected] [email protected] [email protected] DIVISION RESEARCH

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 16 3617547 [email protected] +966 11 2256060 +966 11 2256277 +966 12 6618443 +966 11 2256364 DIVISION [email protected] [email protected] [email protected] [email protected] BROKERAGE AND BROKERAGE INVESTMENT CENTERS

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