June 2019 Saudi Sector- Quarterly Q1-19

Head of Research Talha Nazar +966 11 2256250 [email protected] June 2019 Insurance Sector Report Sector report | KSA | Q1-19

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 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. Al-Etihad Sanad Cooperative Insurance Company Sanad Walaa Cooperative Insurance Co. Walaa Saudi Fransi Cooperative Insurance Co. Allianz SF Al-Ahlia Insurance Co. Al Ahlia The Mediterranean and Gulf Insurance and 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 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 Co. Alinma Tokio MetLife AIG ANB Cooperative Insurance Co. MetLife Aljazira Takaful Taawuni Co. Jazira Takaful June 2019 Insurance Sector Report Sector report | KSA | Q1-19 Gross Written Premium GWP (Gross Written Premiums) in Q1-19 stood at SAR 12.0bn depicting a jump of 8.5% Y/Y. 12,000 32.0% 26.7% 24.2% 22.6% 22.7% 24.6% 28.0% NWP (Net Written Premiums) in Q1-19 stood at SAR 10.2bn, depicting a jump of 6.5%Y/Y. 10,000 21.5% 24.0% 16.7% 15.5% 20.0% 8,000 12.2% 11.9% 16.0% 8.48% 6,000 12.0% NPE (Net Premium Earned) in Q1-19 at SAR 7.6bn showed an increase of 2.8% Y/Y. 4.82% 8.0% 2.0% 0.74% 0.77% 4.0% 4,000 -2.1% -2.2% -2.6% -3.70% -2.60% 0.0% In Q4-18, Health Sector accounted for 59.7% of the total GWP, followed by Motor which 2,000 -9.5% -4.0% -8.0% accounted for 24.9% of GWP 0 -12.0%

Market Share 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 Q3 - 2018 Q4 - 2018 Q1 - 2019 GWP - LHS % Growth (YoY) - RHS BUPA with 24.2% market share in GWP was the biggest player, followed by Tawuniya at Premium Ceded-Industry 20.5%. 12,000 90% 88% Gainer/Loser: MedGulf improved its market share from 3.7% in Q1-18 to 9.0% in Q1-19 an 10,000 86% 8,000 84% improvement of 520bps , followed by Bupa which showed an improvement of 171bps. Alrajhi 82% 6,000 80% 78% Takaful lost its market share from 17.2% in Q1-18 to 13.9% in Q1-19. 4,000 76% 2,000 74% 72% Retention Ratio: Industry retention ratio stood at 85.2% in Q1-19, as compared to 86.7% in 0 70% Q1-18. BUPA has the highest retention ratio of 99.15% in Q1-19, Al Rajhi Takaful at 96.5% had the second highest retention ratio. 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 Q3 - 2018 Q4 - 2018 Q1 - 2019 Premium Ceded - LHS Retention Ratio - RHS

GWP-Sector WIse NPE-Sector Wise Net Premium Earned 1% 9% Health Health 8,000 32.1% 35.0% 23.8% 2% 3% 27.3% 27.2%26.1% 30.0% 3% 7,000 24.4% 25.1% 24.8% 4% 20.9% 25.0% 6,000 19.9% Motor Motor 16.9% 20.0% 5,000 15.0% 30% 4,000 6.8% 10.0% 3,000 2.2% Property/ Fire Protection and Saving 2.3% 0.8% 0.0% 2.8% 5.0% -2.4% -1.6% 25% 2,000 -4.4% -4.4% -3.0% 0.0% 60% 1,000 -5.0% 64% Protection and Saving Accident and Liability - -10.0%

Others Others 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 Q3 - 2018 Q4 - 2018 Q1 - 2019 NPE % Growth (YoY) - RHS Top 5 and Bottom 5- Retention Ratio Gross Written Premium- Market Share Top 5 Gainers and Losers- GWP market Share 100.00% 6.0% Bupa Arabia Tawuniya 5.2% 90.00% 5.0% 80.00% 34.8% 24.2% 4.0% 70.00%

60.00% 3.0% 50.00% 2.0% 1.71% 1.53% Al Rajihi Takaful MEDGULF 40.00% 1.0% 0.7% Insurance Amana

30.00% Al Rajihi Takaful AXA-Cooperative Saudi Re Salama MetLife AIG Alarabi 20.5% 0.0% 20.00% 0.5% 4.5% -1.0% 10.00% -1.0% -0.7% 7.0% -1.2% -2.0% -1.6% 0.00% 9.0% Tawuniya MEDGULF Bupa Al Rajihi AXA Salama Al Ahlia UCA ATC Chubb Alinma Al Alamiya AXA-Cooperative Others Gulf Union -2.1% -3.0% Bupa Arabia Source: Argaam, SAMA 1Basis Points June 2019 Insurance Sector Report Sector report | KSA | Q1-19 Gross Claims Paid GCP (Gross Claims Paid) in Q1-19 stood at SAR 7.3bn depicting a jump of 9.0% Y/Y. Gross Claims Paid - LHS % Growth (YoY) - RHS 7,500 31% 28% 35% 24% 30% 25% NCI (Net Claim Incurred) in Q1-19 stood at SAR 6.3bn, depicting a rise of 7.7%Y/Y. 6,000 24% 23% 18% 9% 25% 17% 20% 4,500 13% 15% 9% 9% 9.0% 7.7% 7% 7% 10% Market Share 3,000 5% 2.3% 5% -1% BUPA with 26.6% market share in GCI paid the highest claims of SAR 1.93bn, , followed by 1,500 -3% -3.8% 0% -7% -5% Tawuniya at 25.0% market share in claims. - -10%

Aljazira Takaful paid the lowest claims of SAR 2.2mn. 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 Q3 - 2018 Q4 - 2018 Q1 - 2019

In Q4-18, Health sector accounted for the highest share in claims at 71.3% , followed by Net Claims Paid Net Claims Paid - LHS % Growth (YoY) - RHS 7,000 66% 70% 65% Motor sector at 24.9%. 60% 6,000 55% 50% 5,000 45% 17% 17% 40% 25% 29% Tawuniya had the highest loss ratio of 93.0% in Q1-19,followed by Medgulf at 91.7% in 24% 35% 4,000 23% 21% 19.7% 30% 17% 19% 25% 20% 3,000 7% Q1-19. 3.4% 5.3% 5.5% 2.8% 15% 2%- 0.2% 10% 2,000 0.9% 5% 7%- 13.2%- -6.2% 0% -5% Aljazira Takaful had the lowest loss ratio of 3.0%. 1,000 -10% -15% - -20% Aljazira Takaful had the lowest combined ratio of 75%. 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 Q3 - 2018 Q4 - 2018 Q1 - 2019

Claims Market Share-Company wise Claims Market Share-sector wise Claims Paid-Company wise 1% 2,500 1% Health Q1 - 18 Q1 - 19 2% 2,000 25% 26.6% Bupa Arabia Tawuniya 1,500 %25 Motor 1,000

MEDGULF Al Rajihi Takaful 500

Protection and Saving IN MN SAR 3% - 3% ATC UCA Buruj AICC ACIG Enaya SAICO Al Ahlia 6% Others SAICO Property/ Fire Salama Saudi Re Solidarity

%71 Wataniya Tawuniya Allianz SF Gulf Union MEDGULF 25.0% Al Alamiya Bupa Arabia AL- ETIHAD Gulf General Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield Arabian

11% Sagr Insurance Alinma Tokio M Al Rajhi TakafulAl Rajhi Walaa Insurance Malath Insurance AXA-Cooperative AXA Others Amana Insurance MetLife AIG Alarabi

Loss Ratio Combined Ratio 120.0% 300% Q1 - 18 Q1 - 19 Q1 - 18 Q1 - 19 100.0% 250% 80.0% 200% 60.0% 150% 40.0% 100% 20.0% 50% 0.0% 0% ATC UCA ATC UCA Buruj AICC ACIG Buruj AICC ACIG Enaya Enaya SAICO SAICO Al Ahlia Salama Al Ahlia Salama Saudi Re Solidarity Wataniya Saudi Re Solidarity Tawuniya Wataniya Tawuniya Allianz SF Allianz SF Gulf Union Gulf Union MEDGULF Al Alamiya MEDGULF Al Alamiya Bupa Arabia AL- ETIHAD Gulf General Bupa Arabia AL- ETIHAD Gulf General Chubb Arabia Jazira TakafulJazira SABB Takaful Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield Arabian Shield Arabian Sagr Insurance Alinma Tokio M Sagr Insurance Alinma Tokio M Al Rajhi TakafulAl Rajhi Al Rajihi Takaful Walaa Insurance Walaa Insurance Malath Insurance AXA-Cooperative Malath Insurance Amana Insurance Amana AXA-Cooperative Amana Insurance MetLife AIG Alarabi MetLife AIG Alarabi Source: Argaam, SAMA, AlJazira Capital June 2019 Insurance Sector Report Sector report | KSA | Q1-19 Net Income Net income for the sector stood at SAR 116.4mn in Q1-19, as compared to SAR 66.0 mn in 1,100 803 Q1-18, depicting a rise of 75.6%Y/Y. 620 664 700 491 405 432 403 351 285 300 199 233 240 198 260 122 66 116 (100) Net income before Zakat stood at SAR 205.4mn, depicting a jump of 22.6%Y/Y. (41) (31) In MN SAR (500) (457) (496) Bupa Arabia posted net income of SAR 81.7mn in Q1-19, as compared to a loss of 13.2mn (900) (1,300) in Q1-18. 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 Q3 - 2018 Q4 - 2018 Q1 - 2019 Bupa showed the highest surplus, from its insurance operations , at SAR 73.4mn. Net Income-Company wise

Rajhi Takful showed the highest investment income of SAR 47.5mn in the sector, registering 150.00 a fall of 17.8%Y/Y. 100.00 50.00 Aljazira Takaful showed the second highest Operating margins at 4.2%, and net margin at 0.00 -50.00

44.9%. Mn SAR In -100.00 Bupa Arabia posted the highest RoE and RoA of 21.3% and 6.1% repectively. Bupa Arabia Tawuniya AXA-Cooperative Saudi Re Buruj AL-ETIHAD Walaa Insurance Allianz SF Chubb Arabia Jazira Takaful Al Alamiya Wataniya MEDGULF Solidarity Malath Insurance ATC Gulf General Shield Arabian ACIG SAICO SABB Takaful Al Rajihi Takaful Al Ahlia Sagr Insurance AICC UCA MetLife AIG Alarabi Alinma Tokio M Salama Enaya Amana Insurance Gulf Union

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

16.0% 50.0% 80 14.0% 45.0% 40.0% 60 12.0% 35.0% 40 10.0% 30.0% 8.0% 25.0% 20 20.0% 6.0% 0 15.0% 4.0% 10.0% -20

2.0% 5.0% In Mn SAR 0.0% -40

0.0% ATC UCA Buruj AICC ACIG Enaya SAICO Buruj ATC Al Ahlia Salama Buruj Chubb Saudi Re Solidarity Wataniya Al Ahlia Tawuniya Allianz SF Al Alamiya MEDGULF Saudi Re AL-ETIHAD Wataniya Bupa Arabia Al Alamiya Gulf General Al Alamiya AL-ETIHAD Chubb Arabia Jazira Takaful SABB Takaful AL-ETIHAD Arabian Shield Sagr Insurance Alinma Tokio M Jazira Takaful Al Rajihi Takaful Jazira Takaful Walaa Insurance Malath Insurance Arabian Shield AXA-Cooperative Amana Insurance Walaa Insurance Malath Insurance MetLife AIG Alarabi AXA-Cooperative Walaa Insurance Malath Insurance AXA-Cooperative

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

40.0% 10.0% 45 40 30.0% 35 5.0% 30 20.0% 25 10.0% 0.0% 20 15 0.0% 10 -5.0% 5 -10.0% In Mn SAR 0 -20.0% -10.0% ATC UCA Buruj AICC ACIG Enaya SAICO Al Ahlia -30.0% Salama Saudi Re Solidarity Buruj Wataniya Tawuniya Bupa Allianz SF Gulf Union Gulf Al Alamiya Al Chubb

-15.0% Alinma MEDGULF Amana AL-ETIHAD Bupa Arabia

-40.0% GeneralGulf Solidarity Chubb Arabia Jazira Takaful Jazira SABB Takaful Arabian Shield Gulf Union Sagr Insurance Alinma Tokio M AL-ETIHAD Al Rajihi Takaful Rajihi Al Gulf General Walaa Insurance Malath Insurance AXA-Cooperative Amana Insurance Jazira Takaful MetLife AIG Alarabi Bupa Al Rajihi AL-ETIHAD Chubb Buruj UCA Solidarity Amana Gulf Union MEDGULF Source: Argaam June 2019 Insurance Sector Report Sector report | KSA | Q1-19

Lowest PE Trade Union had the lowest PE of 7.0x, followed by Buruj with a PE of 8.7x. 20.0 18.0 Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.7x, followed by Sagr 16.0 14.0 with a PB of 0.9x 12.0 10.0 8.0 Only 2 companies gave out dividends Walaa had the highest dividend yield of 5.1%. 6.0 4.0 2.0 0.0 Trade Buruj CHUBB WALAA Allianz SF AXA AlRajhi Bupa Jazira Arabian Union Cooperative Takaful Arabia Takaful Shield

Tadawul Insurance Index- 1 Yr Performance Tawuniya-1 Yr Performance Lowest PB 9500.0 5000.0 9500.0 100.0 1.4 4800.0 9000.0 9000.0 90.0 1.2 4600.0 8500.0 4400.0 8500.0 80.0 1.0 4200.0 8000.0 0.8 4000.0 8000.0 70.0 7500.0 3800.0 7500.0 60.0 0.6 3600.0 7000.0 0.4 3400.0 7000.0 50.0 6500.0 3200.0 0.2 6500.0 40.0 5/30/2018 8/30/2018 11/30/2018 2/28/2019 5/30/2018 8/30/2018 11/30/2018 2/28/2019 0.0 TASI (LHS) Insurance Sector (RHS) TASI (LHS) Tawuniya (RHS) Saudi Re Sagr SAICO Arabian Shield MALATH Salama Gulf Union Al-Ahlia WALAA Gulf General

BUPA-1 Yr Performance Alrajhi Takaful-1 Yr Performance Highest Dividend Yield 9500.0 9500.0 90.0 6.0% 95.0 85.0 5.1% 9000.0 9000.0 5.0% 85.0 80.0 8500.0 8500.0 75.0 75.0 70.0 4.0% 8000.0 8000.0 65.0 65.0 3.0% 60.0 7500.0 55.0 7500.0 55.0 2.0% 1.7% 7000.0 45.0 7000.0 50.0 45.0 1.0% 6500.0 35.0 6500.0 40.0 5/30/2018 8/30/2018 11/30/2018 2/28/2019 5/30/2018 8/30/2018 11/30/2018 2/28/2019 0.0% WALAA Bupa Arabia TASI (LHS) Bupa (RHS) TASI (LHS) Alrajhi takaful (RHS)

Medgulf-1 Yr Performance Walaa-1 Yr Performance Top 5 Companies-Market Cap 9500.0 24.0 9500.0 25.0 12,000 9000.0 24.0 22.0 9000.0 23.0 10,000 8500.0 20.0 8500.0 22.0 21.0 8,000 18.0 8000.0 8000.0 20.0 16.0 19.0 6,000

7500.0 7500.0 In Mn SAR 14.0 18.0 4,000 7000.0 7000.0 17.0 12.0 16.0 6500.0 10.0 6500.0 15.0 2,000 5/30/2018 8/30/2018 11/30/2018 2/28/2019 5/30/2018 8/30/2018 11/30/2018 2/28/2019 - TASI (LHS) Medgulf (RHS) TASI (LHS) WALAA (RHS) Bupa Arabia Tawuniya AlRajhi Takaful MEDGULF AXA Cooperative June 2019 Insurance Sector Report Sector report | KSA | Q1-19

APPENDIX 1 Y/Y Q/Q Y/Y Q/Q Y/Y Q/Q GWP NWP NPE % change % change % change % change % change % change Q1-18 Q4-18 Q1-19 Q1-18 Q4-18 Q1-19 Q1-18 Q4-18 Q1-19 Tawuniya 2,096 2,582 2,457 17.2% -4.8% 1,910 2,223 2,220 16.3% -0.1% 1,759 1,832 1,883 7.0% 2.8% Salama 246 111 151 -38.7% 35.4% 235 95 131 -44.1% 38.8% 113 168 181 60.3% 7.9% UCA 104 78 114 10.0% 46.2% 27 16 17 -38.1% 3.1% 146 52 37 -75.0% -30.0% Al Rajhi Takaful 1,016 616 844 -16.9% 36.9% 985 595 826 -16.1% 38.8% 407 686 719 76.5% 4.8% Al Alamiya 101 81 72 -29.0% -12.1% 63 38 39 -37.7% 3.4% 50 46 39 -22.5% -14.4% ACIG 116 105 144 24.5% 37.0% 105 97 127 21.0% NM* 110 87 82 -24.9% NM* Bupa Arabia 2,489 1,226 2,905 16.7% 137.0% 2,472 1,207 2,885 16.7% 139.0% 1,939 1,909 1,937 -0.1% 1.4% Arabian Shield 241 118 247 2.4% 109.1% 148 96 151 2.2% 57.8% 102 122 106 3.3% -13.5% Buruj 98 66 105 7.0% 58.3% 89 57 97 9.1% 70.7% 100 117 131 30.7% 11.6% Sagr Insurance 64 115 105 64.1% -8.3% 58 105 90 54.7% -14.5% 95 42 58 -39.1% 36.6% Malath Insurance 372 76 380 2.1% 400.6% 345 68 340 -1.6% 397.5% 351 227 220 -37.3% -3.2% Solidarity 72 77 78 8.6% 1.9% 65 71 71 8.9% 0.3% 52 43 40 -23.7% -8.0% AL-ETIHAD 232 259 204 -12.0% -21.0% 205 242 180 -12.2% -25.8% 193 189 176 -9.0% -6.9% Walaa Insurance 311 289 276 -11.2% -4.8% 247 181 210 -14.8% 16.1% 161 200 196 21.7% -2.2% Allianz SF 298 207 359 20.2% 73.5% 234 162 289 23.4% 78.4% 130 166 160 23.3% -3.6% Al Ahlia 34 43 42 21.7% -3.4% 30 38 37 23.4% -2.4% 43 37 37 -15.5% -1.4% MEDGULF 414 542 1,077 160.4% 98.9% 349 472 683 95.9% 44.7% 714 586 565 -20.9% -3.7% SABB Takaful 34 24 43 24.9% 82.4% 28 28 26 -4.7% -5.7% 32 34 33 3.0% -4.3% SAICO 371 207 359 -3.0% 73.5% 223 168 216 -3.3% 28.8% 124 130 142 14.6% 9.1% Gulf Union 80 149 174 116.8% 16.7% 44 99 111 155.2% 13.0% 23 56 54 130.2% -4.1% Saudi Re 528 48 424 -19.7% 788.4% 492 31 403 -18.2% 1219.1% 119 143 150 26.0% 5.0% AICC 117 60 92 -21.5% 51.7% 85 34 71 -16.7% 111.0% 70 73 54 -23.8% -26.4% ATC 123 52 64 -48.0% 23.3% 32 45 13 -59.2% -70.7% 21 21 16 -24.3% -24.3% AXA-Cooperative 675 180 545 -19.3% 201.8% 589 174 529 -10.2% 203.2% 265 323 300 13.5% -6.9% Chubb Arabia 99 50 93 -5.9% 85.3% 51 11 46 -9.7% 306.0% 29 27 26 -11.1% -2.7% Gulf General 94 50 85 -9.6% 72.3% 47 28 52 10.6% 87.6% 34 29 23 -31.8% -19.5% Wataniya 268 103 271 1.0% 163.3% 142 53 146 2.6% 176.3% 65 74 73 11.9% -1.7% Amana Insurance 36 33 97 168.5% 190.8% 21 28 93 334.6% 230.0% 58 14 11 -81.6% -24.1% Enaya 87 2 25 -71.1% 1190.2% 83 (2) 25 -69.6% -1628.0% 14 34 52 270.2% 55.5% Alinma Tokio M 142 45 135 -5.0% 200.4% 109 22 81 -26.2% 272.9% 33 32 35 4.0% 9.1% MetLife AIG Alarabi 101 27 28 -72.1% 4.9% 76 7 9 -88.7% 26.0% 42 55 69 66.1% 25.5% Jazira Takaful 14 20 17 20.3% -15.2% 14 3 16 16.6% 407.2% 7 9 7 -2.9% -18.9% Total 11,074 7,642 12,013 8.5% 57.2% 9,603 6,491 10,230 6.5% 57.6% 7,402 7,563 7,608 2.8% 0.6% Source: Argaam, *NM: Not meaningfull June 2019 Insurance Sector Report Sector report | KSA | Q1-19

APPENDIX 2 Y/Y Q/Q Y/Y Q/Q Gross Claims Paid Net Claims Paid % change % change % change % change Q1-18 Q4-18 Q1-19 Q1-18 Q4-18 Q1-19 Tawuniya 2,206 1,906 1,821 -17.4% -4.5% 1,581 1,738 1,444 -8.6% -16.9% Salama 145 161 155 7.1% -3.6% 136 157 150 9.8% -4.8% UCA 54 69 42 -23.0% -39.9% 15 28 11 -23.1% -60.4% Al Rajhi Takaful 556 608 825 48.4% 35.5% 591 602 627 6.1% 4.2% Al Alamiya 20 33 25 24.7% -23.5% 9 21 13 37.9% -38.8% ACIG 75 109 94 24.4% -14.0% 69 98 89 28.1% -9.6% Bupa Arabia 1,341 1,894 1,932 44.0% 2.0% 1,728 1,891 1,911 10.6% 1.0% Arabian Shield 68 63 74 10.0% 18.2% 64 88 102 60.3% 15.7% Buruj 67 58 50 -25.4% -14.4% 62 45 34 -45.8% -24.2% Sagr Insurance 50 57 52 5.1% -8.4% 45 56 64 41.6% 14.6% Malath Insurance 169 143 148 -12.1% 3.7% 90 114 126 39.7% 10.4% Solidarity 21 43 43 105.1% -0.1% 8 60 35 312.8% -42.0% AL-ETIHAD 124 182 167 35.0% -8.0% 119 182 149 24.8% -18.0% Walaa Insurance 120 155 141 17.7% -9.1% 122 109 120 -1.3% 11.0% Allianz SF 158 181 167 5.8% -7.4% 121 131 118 -2.3% -10.3% Al Ahlia 26 34 33 27.6% -1.5% 29 32 30 6.4% -3.6% MEDGULF 552 459 454 -17.7% -1.0% 421 480 443 5.3% -7.7% SABB Takaful 6 18 5 -8.0% -69.8% 27 25 19 -28.5% -22.7% SAICO 110 141 188 70.5% 33.9% 106 127 131 22.8% 3.1% Gulf Union 49 40 80 62.5% 102.4% 28 19 59 106.6% 206.7% Saudi Re 85 118 109 28.5% -7.7% 113 102 121 7.8% 18.8% AICC 47 76 65 39.5% -14.5% 33 40 49 49.0% 21.5% ATC 26 40 52 98.7% 29.4% 4 17 4 1.4% -75.0% AXA-Cooperative 175 271 210 20.3% -22.4% 237 251 223 -6.1% -11.1% Chubb Arabia 14 12 13 -8.0% 8.6% 8 4 5 -40.7% 29.9% Gulf General 41 55 52 27.7% -6.0% 14 32 30 111.3% -3.9% Wataniya 65 91 103 59.6% 13.3% 44 83 80 81.6% -3.7% Amana Insurance 10 26 31 208.1% 16.1% 4 8 32 750.5% 282.5% Enaya 68 86 67 -1.5% -21.2% 119 48 26 -78.3% -46.6% Alinma Tokio M 35 58 37 6.6% -35.1% 37 48 29 -19.5% -38.5% MetLife AIG Alarabi 74 2 33 -55.2% 1778.6% 75 21 9 -88.2% -57.7% Jazira Takaful 4 4 2 -38.7% -42.0% 0 0 1 162.2% 144.0% Total 6,560 7,191 7,273 10.9% 1.1% 6,060 6,656 6,283 3.7% -5.6% Source: Argaam, *NM: Not meaningfull June 2019 Insurance Sector Report Sector report | KSA | Q1-19

APPENDIX 3 Y/Y Q/Q Y/Y Q/Q Net income Before Zakat Net Income % change % change % change % change Q1-18 Q4-18 Q1-19 Q1-18 Q4-18 Q1-19 MetLife AIG Alarabi (15.6) (8.2) (7.2) -53.8% -12.0% (16.1) (8.4) (7.6) -52.7% -9.4% Jazira Takaful 7.3 10.1 7.5 1.5% -26.5% 7.1 10.0 7.2 1.2% -27.8% Tawuniya 41.9 (270.7) 46.0 9.8% -117.0% 27.1 (293.4) 29.0 7.3% -109.9% Malath Insurance 10.0 (9.7) 6.6 -34.4% -167.7% 7.8 (16.0) 3.3 NM* -120.5% MEDGULF (23.3) (92.8) 7.0 -130.2% -107.6% (25.1) (94.3) 4.0 -115.8% -104.2% Allianz SF 9.7 8.6 11.2 16.0% 30.5% 8.1 5.7 8.8 9.2% 54.9% Salama 7.3 (5.8) (14.6) -300.1% 151.2% 5.8 (7.3) (16.1) -377.8% 120.2% Walaa Insurance 38.7 4.7 15.3 -60.4% 223.8% 34.8 1.8 11.3 -67.6% 523.8% Arabian Shield 13.1 9.9 3.8 -71.2% -62.0% 9.8 7.0 1.3 -87.1% -82.0% SABB Takaful 0.6 3.4 1.5 153.7% -55.5% (0.9) 1.8 (0.0) -96.9% -101.6% SAICO 0.0 (6.1) 3.0 8758.8% -149.3% (2.1) (8.0) 0.5 -125.7% -106.7% Gulf Union 5.5 17.8 (36.2) -761.8% -302.8% 3.1 17.0 (37.9) -1318.8% -322.8% ATC 7.9 (10.8) 3.9 -50.5% -136.0% 6.0 (14.5) 2.2 -62.6% -115.5% Al Ahlia 7.2 0.4 (0.1) -100.7% -112.2% 6.3 (0.2) (0.7) -111.6% 227.7% ACIG 2.4 (1.9) 2.0 -18.2% -205.3% 1.9 (3.0) 1.0 -48.8% -133.4% AICC 3.8 (2.9) (5.2) -235.9% 81.6% 2.5 (4.0) (6.3) -352.6% 60.5% AL-ETIHAD 25.2 6.4 15.0 -40.5% 135.6% 20.2 1.3 12.0 -40.6% 788.3% Solidarity 1.3 (62.7) 3.7 176.3% -105.9% (4.9) (66.4) 3.6 -172.9% -105.4% Wataniya 16.7 (9.9) 7.1 -57.1% -172.3% 15.4 (9.6) 4.9 -68.0% -151.0% Amana Insurance (6.9) (8.0) (20.8) 200.7% 158.7% (6.2) (8.8) (20.9) 234.7% 138.0% AXA-Cooperative 18.2 15.0 26.8 47.1% 78.4% 14.4 13.0 21.7 51.1% 66.9% Gulf General 0.0 (17.5) 2.6 7238.9% -115.1% (1.2) (17.7) 1.6 -241.8% -109.3% Buruj 22.9 8.0 16.1 -29.5% 101.6% 19.7 5.6 13.0 -34.0% 133.2% Al Alamiya 10.5 6.7 7.8 -26.3% 16.6% 8.2 4.4 5.6 -32.3% 26.1% Saudi Re 7.6 (10.3) 24.8 226.9% -340.1% 4.6 (14.0) 21.4 365.4% -253.5% UCA (7.6) (43.7) (5.5) -27.3% -87.3% (9.1) (42.2) (6.5) -28.3% -84.5% Bupa Arabia 9.3 92.4 94.1 906.9% 1.8% (13.2) 68.5 81.7 -717.8% 19.2% Sagr Insurance 9.3 (17.7) (0.3) -103.4% -98.2% 5.9 (17.7) (2.5) -143.0% -85.8% Chubb Arabia 10.6 18.4 9.6 -9.4% -47.6% 8.7 15.8 7.7 -11.4% -51.4% Enaya (103.3) (15.6) (17.6) -83.0% 12.7% (103.9) (16.2) (18.2) -82.5% 12.2% Al Rajihi Takaful 41.4 13.4 4.4 -89.4% -67.2% 37.6 8.4 (0.4) -101.1% -105.1% Alinma Tokio M (4.4) (13.4) (7.1) 64.1% -46.6% (5.7) (14.7) (8.2) 43.6% -44.3% Total 167.5 (392.4) 205.4 22.6% -152.3% 66.3 (495.9) 116.4 75.6% -123.5% Source: Argaam, *NM: Not meaningfull June 2019 Insurance Sector Report Sector report | KSA | Q1-19

APPENDIX 4

Market Cap PE PB Dividend Yield

Tawuniya 8,500.00 NM* 4.2 -- METLIFE AIG ANB 380.52 NM* 2.6 -- Jazira Takaful 563.50 17.6 1.4 5.12% MALATH INSURANCE 491.00 NM* 1.1 -- MEDGULF 1,116.80 NM* 1.6 -- Allianz SF 458.00 11.9 1.6 -- Salama 272.50 NM* 1.1 -- WALAA 900.77 11.7 1.3 -- Arabian Shield 447.00 17.9 1.0 -- SABB Takaful 544.68 275.1 1.6 -- SAICO 298.20 NM* 0.9 -- WAFA Insurance 95.00 - - -- Gulf Union 161.40 NM* 1.2 -- ATC 394.98 61.1 1.7 -- Al-Ahlia 155.20 18.9 1.3 -- ACIG 352.00 182.4 2.5 -- AICC 426.12 NM* 1.7 -- Trade Union 577.50 7.4 1.3 -- Sagr Insurance 404.00 NM* 0.9 1.70% U C A 380.00 NM* 1.1 -- Saudi Re 589.68 19.1 0.7 -- Bupa Arabia 10,740.00 17.6 4.0 -- AlRajhi Takaful 2,036.00 13.8 2.6 -- CHUBB 435.20 10.0 1.4 -- AXA Cooperative 1,037.70 12.2 1.7 -- Gulf General 210.00 NM* 1.3 -- Buruj 572.40 8.7 1.2 -- Al Alamiya 808.80 28.4 2.0 -- Solidarity 336.00 NM* 1.3 -- Wataniya 388.80 39.3 1.6 -- Amana Insurance 262.56 NM* 1.5 -- Enaya 318.60 NM* 1.3 -- Alinma Tokio M 363.00 NM* 1.5 -- Sector 35,017.91 16.5 2.3 --

Source: Argaam, *NM: Not meaningful Head of Research Senior Analyst Analyst Talha Nazar Jassim Al-Jubran Abdulrahman Al-Mashal +966 11 2256250 +966 11 2256248 +966 11 2256374 [email protected] [email protected] [email protected] DIVISION RESEARCH

General Manager – Brokerage Services AGM-Head of international and institutional AGM-Head of Qassim & Eastern Province AGM-Head of Sales And Investment Centers Central Region, & & sales brokerage acting head Western and Southern Region Investment Centers Alaa Al-Yousef Luay Jawad Al-Motawa Abdullah Al-Rahit Sultan Ibrahim AL-Mutawa +966 11 2256060 +966 11 2256277 +966 16 3617547 +966 11 2256364 DIVISION [email protected] [email protected] [email protected] [email protected] BROKERAGE AND BROKERAGE INVESTMENT CENTERS

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