Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

Saudi Insurance Sector- Quarterly Q3-2017 November 2017 Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

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. Trade Union 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 Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

Gross Written Premium GWP (Gross Written Premiums) in Q3-2017 stood at SAR 8.3bn depicting a jump of 0.7% 30.2% 11.9% -2.2% 12000 26.7% 32.0% 24.2% 24.6% 28.0% YoY. 22.6% 22.7% 10000 20.4% 21.5% 16.7% 2.0% 24.0% 18.3% 19.3% -2.6% 15.5% -9.5% 0.74% 14.5% -2.1% 20.0% 8000 12.2% 16.0% NWP (Net Written Premiums) in Q3-2017 stood at SAR 6.9bn, depicting a fall of 2.6%YoY. 8.0% 12.0% 6000 8.0% 4000 4.0% NPE (Net Premium Earned) in Q3-2017 at SAR 7.7bn showed a jump of 2.3%YoY. 0.0% 2000 -4.0% -8.0% Health Sector Accounted for 55% of the total GWP, followed by Motor which accounted 0 -12.0% for 27% of GWP Q2 - 2012 Q3 - 2012 Q4 - 2012 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 Market Share GWP - LHS % Growth (YoY) - RHS BUPA with 30.5% market share in GWP was the biggest player. Premium Ceded-Industry 12,000 90% 88% Gainer/Loser: Alrajhi Takaful improved its market share from 5.3% in Q3-2016 to 7.7% in Q3- 10,000 86% 8,000 84% 2017 an improvement of 240bps , followed by Saudi Re which showed an improvement of 82% 6,000 80% 266bps. Tawuniya improved its market share from 15.1% in Q3-2017 to 17.2% in Q3-2017. 78% 4,000 76% 2,000 74% 72% Retention Ratio: Industry retention ratio stood at 83% in Q3-2017, as compared to 85.8% 0 70% in Q3-2016. Enaya has the highest retention ratio of 101% in Q3-2017 BUPA Arabia at

98.8% had the second highest retention ratio. Q2 - 2012 Q3 - 2012 Q4 - 2012 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 Premium Ceded - LHS Retention Ratio - RHS

GWP-Sector WIse NPE-Sector Wise Net Premium Earned

32.1% 19.9% 35.0% Health 2% Health 8,000 -4.4% 2.3% 10% 2% 23.8% 24.8% 6.8% 2.2% -2.4% 26.9% 27.3% 27.2% 26.1% 30.0% 7,000 23.9% 24.4% 25.1% 4% 25.0% 6,000 20.4% 20.9% 4% 17.5% 17.8% 16.9% 20.0% Motor Motor 5,000 13.4% 15.0% 4,000 10.0% 34% 3,000 5.0% Property/ Fire Protection and Saving 2,000 0.0% 55% 1,000 -5.0% 27% 60% - -10.0% Energy Accident and Liability Q2 - 2012 Q3 - 2012 Q4 - 2012 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 Others Others 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% 6.0% Bupa Arabia Tawuniya 90% 4.0% 3.7% 80% 32.6% 2.66% 70% 30.5% 2.07% 2.0% 60% 0.8%

0.6% Malath Union Trade Bupa Arabia AICC Arabian Shield 50% 0.0% 40% Al Rajihi Takaful MEDGULF -0.9% -0.6% -0.5% 30% -2.0% 20% -2.1% 10% -4.0% 0% 4.5% 17.2% -6.0% 6.2% -5.7% Al RajihiAl Takaful Saudi Re Tawuniya Alarabi MetLife AIG UCA 9.0% AXA-Cooperative Others Enaya Bupa Arabia Al Rajihi Takaful Salama Malath Insurance ATC UCA Amana Insurance Alinma Tokio M Gulf General -8.0% Source: Argaam, SAMA 1Basis Points Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

Gross Claims Paid GCP (Gross Claims Paid) in Q3-2017 stood at SAR 6.1bn depicting a jump of 7.0% YoY. 7,500 Gross Claims Paid - LHS % Growth (YoY) - RHS 30% 31% 23% 35% 30% NCP (Net Claim Paid) in Q3-2017 stood at SAR 5.7bn, depicting a rise of 3.4%YoY. 25% 24% 28% 6,000 24% 25% 24% 22% 27% 19% 17% 20% 4,500 Market Share 9% 18% 13% 15% 9% 9% 7% 3,000 7% 10% 5% -1% BUPA Arabia with 25.3% market share in GCP paid the highest claims of SAR 1.33bn, 1,500 -3% 0% -7% -5% followed by Tawuniya at 24.9% market share in claims. - -10% Aljazira Takaful paid the lowest claims of SAR 2.02mn. Q2 - 2012 Q3 - 2012 Q4 - 2012 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

Health sector accounted for the highest share in claims at 64% , followed by Motor sector Net Claims Paid 66% at 32%. 7,000 Net Claims Paid - LHS % Growth (YoY) - RHS 70% 60% 6,000 40% 50% Malath insurance had the highest loss ratio of 99.0% in Q3-2017,followed by MedGulf at 5,000 38% 32% 40% 29% 29% 88.1% in Q3-2017. 4,000 24% 24% 24% 23% 21% 30% 17% 17% 17% 19% 3,000 25% 20% 7% 3.4% 10% 2,000 -2% 0.2% Aljazira Takaful had the lowest loss ratio of 10.3%. -7% 0% -13.2% 1,000 -10% UCA had the highest combined ratio of 153%, whereas Amana insurance had the lowest - -20% combined ratio of 23.4%. Q2 - 2012 Q3 - 2012 Q4 - 2012 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

Claims Market Share-Company wise Claims Market Share-sector wise Claims Paid-Company wise Others

2% 2% 1800 1600 Health Q3 - 2016 Q3 - 2017 1400 Bupa Arabia Tawuniya 1200 1000 25% 25% Motor 800 600

32% IN MN SAR 400 MEDGULF Al Rajihi Takaful 200 Protection and Saving 0 3% 3% Malath 64% Engineering 8% AXA 25% 10% Others Others Bupa Arabia Tawuniya MEDGULF Al Rajihi Takaful AXA Malath Insurance Allianz SF Trade Union Salama SAICO Walaa Insurance Wafa Insurance Wataniya Shield Arabian UCA ACIG Buruj MetLife AIG Alarabi Saudi Re Gulf Union AICC Gulf General Chubb Arabia Enaya Alinma Tokio M Sagr Insurance Solidarity Al Ahlia Al Alamiya ATC Amana Insurance SABB Takaful Jazira Takaful

Loss Ratio Combined Ratio

120.0% 180% Q3 - 2016 Q3 - 2017 160% Q3 - 2016 Q3 - 2017 100.0% 140% 80.0% 120% 100% 60.0% 80% 40.0% 60% 40% 20.0% 20% 0% 0.0% AXA ATC UCA Buruj AICC ACIG Enaya Walaa SAICO MetLife Al Ahlia Salama Saudi Re Solidarity Wataniya Tawuniya Allianz SF Gulf Union MEDGULF Al Alamiya Bupa Arabia Gulf General Trade Union Chubb Arabia Jazira TakafulJazira SABB Takaful Arabian Shield Sagr Insurance Alinma Tokio M Wafa Insurance Al Rajihi Takaful Malath Insurance Amana Insurance UCA Alinma Tokio M MetLife AIG Alarabi Wafa Insurance Wataniya Gulf Union Saudi Re ACIG SABB Takaful Gulf General Allianz SF AXA Enaya SAICO AICC Malath Insurance Trade Union Al Ahlia Tawuniya MEDGULF Al Rajihi Takaful Sagr Insurance Chubb Arabia Bupa Arabia Arabian Shield Salama Al Alamiya Buruj Walaa Insurance Solidarity Jazira Takaful ATC Amana Insurance Source: Argaam, SAMA, AlJazira Capital Cooperative Bupa Arabia Gulf General Jazira Takaful SABB Takaful Chubb Arabia Sagr Insurance Arabian Shield Arabian Wafa Insurance Walaa Insurance Alinma Tokio M Malath Insurance Amana Insurance Al Rajihi Takaful MetLife AIG Alarabi Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

Net Income Net income for the sector stood at SAR 664.1mn in Q3-2017, as compared to SAR 802.1mn 1,100 17.3% YoY- 235.5% QoQ in Q3-2016, depicting a fall of 17.2%. On a QoQ basis net income showed a 235.5% increase. 700

300 Net income before Zakat stood at SAR 756.7mn, depicting a fall of 15.4%, whereas a 144.2% (49) (117) (1,159) (41) (31) jump on QoQ basis (100) 340 179 3 199 405 233 240 491 122 285 432 803 620 319 197.9 664.1 In MN SAR (500) BUPA with net income of SAR 198.2mn, showed a fall of 18.3%YoY. (900) (1,300) BUPA showed the highest surplus, from its insurance operations , at SAR 229.4mn, depicting a fall of 21.0%YoY and a QoQ jump of 57.8%. Q3 - 2012 Q4 - 2012 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 Net Income-Company wise AlRajhi takaful showed the highest investment income of SAR 47.8mn in the sector, 200 registering growth of 62.7%YoY and 9.9%QoQ. 150 Solidarity showed the highest Operating margins at 3.8%, whereas Jazira takaful showed 100 the highest net margin at 35.7%, respectively. 50 Gulf Union SABB Takaful Enaya Saudi Re UCA Alinma Tokio M Wafa Insurance MetLife AIG Alarabi 0 In Mn SAR In AXA ATC Buruj AICC ACIG

Buruj posted the highest ROE of 35.8% -50 SAICO Al Ahlia Salama Solidarity Wataniya Tawuniya Allianz SF MEDGULF Al Alamiya Bupa Arabia Gulf General -100 Trade Union Chubb Arabia Jazira Takaful Arabian Shield Sagr Insurance Al Rajihi Takaful

Buruj also posted the highest ROA of 11.0%. Walaa Insurance Malath Insurance Amana Insurance

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

4.0% 40.0% 250 3.5% 35.0% 200 3.0% 30.0% 150 2.5% 25.0% 100 2.0% 20.0% 50

1.5% 15.0% In Mn SAR 0 ATC 1.0% 10.0% UCA Buruj AICC

-50 ACIG Enaya SAICO Al Ahlia 0.5% Salama Solidarity

5.0% Wataniya Tawuniya Allianz SF Gulf Union MEDGULF Al Alamiya Cooperative Bupa Arabia Gulf General 0.0% Trade Union 0.0% Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield Sagr Insurance

Jazira Solidarity Amana Buruj Chubb Sagr Arabian Gulf ATC Saudi Alinma Tokio M Solidarity Jazira Amana Buruj Walaa Chubb Arabian ATC Wataniya Sagr Wafa Insurance Al Rajihi Takaful Walaa Insurance Malath Insurance Amana Insurance Takaful Arabia Shield Takaful Arabia ShieldGeneral Re AXA

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

10.0% 40% 50 45 40 20% 5.0% 35 30

Malath Alinma Tokio M Enaya MetLife AIG MEDGULF 25 0% 0.0% Malath Insurance Alinma Tokio M MetLife AIG Enaya MEDGULF 20 15 Buruj 10 -20% Salama Buruj

In Mn SAR 5

-5.0% Salama 0 Solidarity

-40% Arabian Shield AXA ATC Al Rajihi Takaful UCA Walaa Insurance Buruj AICC ACIG Enaya Arabian Shield Arabian SAICO Malath Walaa Al Ahlia Salama -10.0% Amana Walaa Insurance Saudi Re Solidarity Wataniya Tawuniya

-60% Allianz SF Gulf Union MEDGULF Al Alamiya Bupa Arabia MetLife AIG Gulf General Trade Union Chubb Arabia Jazira Takaful SABB Takaful Arabian Shield Sagr Insurance Alinma Tokio M -15.0% Wafa Insurance -80% Al Rajihi Takaful Source: Argaam Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

Lowest PE United Cooperative Assurance had the lowest PE of 8.3x, followed by Buruj with a PE of 12.0

8.5x. 10.0

Saudi Re for Cooperative Reinsurance Co has the lowest PB of 0.8x, followed by Sagr 8.0 insurance with a PB of 1.4x 6.0 Only 5 companies gave out dividends, SAGR insurance had the highest dividend yield of 4.0 9.1% followed by Arabian Sheild with a dividend yield of 4.8% 2.0 0.0 Buruj Arabian Gulf Union Solidarity SAICO Trade Union U C A WALAA Salama Saudi Re Shield

Tadawul Insurance Index- 1 Yr Performance Tawuniya-1 Yr Performance Lowest PB 7,700.00 5,500.00 7,700.00 105 2.0 1.8 7,500.00 5,300.00 7,500.00 100 1.6 7,300.00 5,100.00 7,300.00 1.4 95 1.2 7,100.00 4,900.00 7,100.00 90 1.0 6,900.00 4,700.00 6,900.00 0.8 6,700.00 4,500.00 6,700.00 85 0.6 0.4 6,500.00 4,300.00 6,500.00 80 0.2 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2016 Mar 2017 Jun 2017 Sep 2017 0.0 Saudi Re Sagr SAICO U C A Trade Union Gulf General Gulf Union Al-Ahlia AXA Solidarity TASI (LHS) Insurance Sector (RHS) Insurance Sector (LHS) Tawuniya (RHS) Insurance Cooperative

BUPA-1 Yr Performance Alrajhi Takaful-1 Yr Performance Highest Dividend Yield 7,700.00 140 7,700.00 65 10.0% 9.1% 9.0% 7,500.00 7,500.00 60 130 8.0% 55 7,300.00 7,300.00 7.0% 120 50 7,100.00 7,100.00 6.0% 110 45 5.0% 4.8% 6,900.00 4.3% 6,900.00 40 4.0% 100 6,700.00 6,700.00 35 3.0% 2.0% 2.0% 1.7% 6,500.00 90 6,500.00 30 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2016 Mar 2017 Jun 2017 Sep 2017 1.0% 0.0% Sagr Insurance Arabian Shield Tawuniya Jazira Takaful Buruj Insurance Sector (LHS) Bupa (RHS) Insurance Sector (LHS) Alrajhi takaful (RHS)

Medgulf-1 Yr Performance Walaa-1 Yr Performance Top 5 Companies-Market Cap 7,700.00 35 7,700.00 80 12,000 7,500.00 70 7,500.00 10,000 60 30 7,300.00 7,300.00 50 8,000 7,100.00 40 7,100.00 25 6,000 6,900.00 30 6,900.00 In Mn SAR 6,700.00 20 4,000 20 6,700.00 6,500.00 10 2,000 Dec 2016 Mar 2017 Jun 2017 Sep 2017 6,500.00 15 Dec 2016 Mar 2017 Jun 2017 Sep 2017 - Insurance Sector (LHS) Medgulf (RHS) Insurance Sector (LHS) WALAA (RHS) Tawuniya Bupa Arabia AlRajhi Takaful MEDGULF WALAA Source: Tadawul, Bloomberg, prices as of 13 of June 2017 Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

APPENDIX 1 YoY QoQ YoY QoQ QoQ GWP NWP NPE YoY %Increase %Increase %Increase %Increase %Increase %Increase Q3-2016 Q2-2017 Q3-2017 Q3-2016 Q2-2017 Q3-2017 Q3-2016 Q2-2017 Q3-2017 MetLife AIG Alarabi 36 88 103 185.4% 17.1% 26 63 89 241.7% 41.2% 42 55 69 66.1% 25.5% Jazira Takaful 29 32 28 -5.9% -13.2% 15 13 13 -10.2% 1.0% 7 9 7 -2.9% -18.9% Tawuniya 1,241 2,104 1,421 14.5% -32.5% 1,077 1,764 1,161 7.7% -34.2% 1,759 1,832 1,883 7.0% 2.8% Malath Insurance 531 144 62 -88.3% -56.8% 466 127 55 -88.2% -56.6% 351 227 220 -37.3% -3.2% MEDGULF 511 869 513 0.4% -40.9% 420 702 426 1.3% -39.4% 714 586 565 -20.9% -3.7% Allianz SF 180 227 147 -18.0% -35.2% 115 134 102 -11.0% NM* 130 166 160 23.3% NM* Salama 132 202 159 20.4% -21.3% 125 194 148 18.9% -23.7% 113 168 181 60.3% 7.9% Walaa Insurance 268 218 284 5.9% 30.7% 193 173 174 -9.6% 0.7% 161 200 196 21.7% -2.2% Arabian Shield 153 165 115 -24.5% -30.2% 101 114 79 -22.0% -30.6% 102 122 106 3.3% -13.5% SABB Takaful 49 45 51 2.8% 11.6% 36 34 39 6.9% 14.3% 32 34 33 3.0% -4.3% SAICO 160 149 157 -2.1% 5.5% 108 105 142 31.6% 36.0% 124 130 142 14.6% 9.1% Wafa Insurance 93 119 100 7.1% -16.1% 78 73 62 -20.8% -15.5% 126 101 98 -22.4% -3.3% Gulf Union 46 79 32 -29.4% -58.9% 26 52 17 -35.2% -67.2% 23 56 54 130.2% -4.1% ATC 115 58 120 4.1% 106.1% 29 10 24 -17.8% 132.3% 21 21 16 -24.3% -24.3% Al Ahlia 43 46 53 23.0% 14.7% 38 43 48 25.0% 12.1% 43 37 37 -15.5% -1.4% ACIG 136 102 113 -17.4% 10.3% 115 88 98 -14.2% 12.0% 110 87 82 -24.9% -5.6% AICC 110 69 59 -46.5% -14.5% 96 46 38 -60.8% -19.0% 70 73 54 -23.8% -26.4% Trade Union 274 289 103 -62.5% -64.4% 231 245 77 -66.8% -68.7% 193 189 176 -9.0% -6.9% Solidarity 55 21 37 -33.3% 79.5% 48 18 30 -37.9% 70.7% 52 43 40 -23.7% -8.0% Wataniya 148 83 152 2.4% 83.6% 89 42 88 -1.5% 106.5% 65 74 73 11.9% -1.7% Amana Insurance 11 16 9 -18.4% -44.6% 4 6 7 72.0% 16.0% 58 14 11 -81.6% -24.1% AXA-Cooperative 387 220 369 -4.6% 67.9% 346 195 334 -3.5% 71.4% 265 323 300 13.5% -6.9% Gulf General 37 46 26 -29.9% -44.5% 17 23 11 -35.5% -54.1% 34 29 23 -31.8% -19.5% Buruj 109 144 95 -12.8% -34.4% 92 133 81 -12.3% -39.3% 100 117 131 30.7% 11.6% Al Alamiya 64 48 57 -11.0% 18.8% 27 26 21 -20.8% -16.1% 50 46 39 -22.5% -14.4% Saudi Re 82 121 303 267.0% 150.2% 75 89 89 18.9% 0.9% 119 143 150 26.0% 5.0% UCA 64 251 116 82.5% -53.7% 25 61 39 51.3% -36.7% 146 52 37 -75.0% -30.0% Bupa Arabia 2,579 1,848 2,523 -2.2% 36.5% 2,567 1,832 2,497 -2.7% 36.3% 1,939 1,909 1,937 -0.1% 1.4% Sagr Insurance 13 93 61 380.0% -34.6% (9) 68 56 -744.3% -18.0% 95 42 58 -39.1% 36.6% Chubb Arabia 42 48 42 0.6% -13.4% 17 28 14 -16.8% -49.0% 29 27 26 -11.1% -2.7% Enaya 21 66 59 178.0% -10.3% 13 65 60 365.4% -8.6% 14 34 52 270.2% 55.5% Al Rajhi Takaful 434 680 742 71.2% 9.2% 410 649 711 73.2% 9.6% 407 686 719 76.5% 4.8% Alinma Tokio M 47 103 51 7.8% -50.9% 17 25 27 58.8% 8.7% 33 32 35 4.0% 9.1% Total 8,201 8,794 8,261 0.7% -6.1% 7,035 7,240 6,856 -2.5% -5.3% 7,529 7,665 7,706 2.4% 0.5% Source: Argaam, *NM: Not meaningfull Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

APPENDIX 2 Gross Claims Paid YoY %Increase QoQ %Increase Net Claims Paid YoY %Increase QoQ %Increase Q3-2016 Q2-2017 Q3-2017 Q3-2016 Q2-2017 Q3-2017 Tawuniya 1,237 1,519 1,512 22.2% -0.5% 1,306 1,230 1,484 13.6% 20.6% Salama 62 112 113 81.6% 1.0% 80 83 128 60.0% 54.1% UCA 187 64 60 -67.9% -5.6% 124 98 15 -87.8% -84.6% Al Rajhi Takaful 287 559 462 60.8% -17.4% 303 329 592 95.1% 79.9% Al Alamiya 28 23 18 -34.6% -21.6% 25 25 12 -51.9% -52.2% ACIG 75 73 60 -19.6% -17.6% 81 79 57 -29.7% -28.0% Bupa Arabia 1,333 1,647 1,536 15.2% -6.8% 1,511 1,399 1,475 -2.4% 5.5% Arabian Shield 43 90 69 58.8% -23.3% 66 66 61 -6.8% -7.1% Buruj 42 61 59 42.1% -3.8% 56 65 78 39.1% 20.6% Sagr Insurance 59 42 26 -56.2% -39.0% 69 41 35 -48.8% -14.6% Malath Insurance 436 264 198 -54.6% -25.0% 400 472 168 -58.1% -64.5% Solidarity 36 26 24 -33.6% -7.2% 25 18 6 -77.3% -69.0% Trade Union 142 143 141 -0.8% -1.3% 176 153 116 -34.0% -24.1% Walaa Insurance 67 125 101 49.2% -19.5% 79 83 100 25.9% 20.0% Allianz SF 89 147 160 79.7% 8.9% 100 102 124 23.8% 22.1% Al Ahlia 31 24 23 -27.3% -5.5% 36 27 22 -38.9% -18.9% MEDGULF 666 633 632 -5.1% -0.0% 657 539 459 -30.2% -14.9% Wafa Insurance 104 149 96 -7.8% -35.4% 102 94 74 -27.6% -21.5% SABB Takaful 5 15 8 57.3% -45.9% 4 5 3 -18.6% -41.1% SAICO 93 135 110 18.6% -19.0% 80 76 95 19.3% 26.1% Gulf Union 20 47 50 157.5% 7.9% 11 12 31 170.0% 154.0% Saudi Re 48 82 57 19.8% -30.3% 569 77 114 -79.9% 48.7% AICC 73 63 47 -35.4% -25.5% 56 37 27 -52.6% -28.2% ATC 11 35 18 65.2% -48.7% 4 5 (0) -108.3% -107.1% AXA-Cooperative 206 211 203 -1.5% -4.1% 219 217 238 8.4% 9.7% Chubb Arabia 28 29 31 11.3% 7.3% 10 14 10 8.3% -27.8% Gulf General 39 35 39 -1.6% 9.1% 20 16 10 -48.3% -38.0% Wataniya 75 57 80 6.7% 39.8% 46 42 49 7.1% 15.8% Amana Insurance 48 22 12 -76.0% -47.6% 63 33 (8) -112.4% -123.5% Enaya 13 23 31 128.7% 31.9% 8 6 31 286.5% 387.9% Alinma Tokio M 45 30 30 -34.2% -1.3% 23 23 18 -23.1% -23.7% MetLife AIG Alarabi 37 46 59 59.1% 27.3% 33 36 66 97.3% 85.3% Jazira Takaful 1 2 2 128.1% 26.9% 1 2 2 157.4% 16.8% Total 5,667 6,533 6,064 7.0% -7.2% 6,344 5,505 5,692 -10.3% 3.4% Source: Argaam, *NM: Not meaningfull Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

APPENDIX 3 Net income Before Zakat YoY %Increase QoQ %Increase Net Income YoY %Increase QoQ %Increase Q3-2016 Q2-2017 Q3-2017 Q3-2016 Q2-2017 Q3-2017 MetLife AIG Alarabi (4.2) (3.2) (10.4) 146.0% 219.7% (4.2) (3.8) (10.9) 158.9% 188.4% Jazira Takaful 6.4 8.9 6.8 6.9% -23.0% 6.0 8.1 6.5 9.2% -19.8% Tawuniya 283.2 248.8 159.7 -43.6% -35.8% 259.6 231.0 141.5 -45.5% -38.7% Malath Insurance 1.3 5.0 11.1 730.9% 120.4% 0.0 3.5 9.6 NM* 171.5% MEDGULF 60.0 (417.3) 60.1 0.1% -114.4% 51.8 (440.0) 56.6 9.2% -112.9% Allianz SF 6.3 7.8 8.0 26.4% 2.3% 4.9 6.0 6.4 30.2% 6.0% Salama 8.7 16.2 22.0 152.1% 36.3% 7.5 14.9 20.8 177.5% 39.4% Walaa Insurance 40.0 35.6 44.4 11.0% 24.7% 38.0 32.3 41.1 8.3% 27.2% Arabian Shield 18.7 22.3 23.1 23.6% 3.5% 16.1 19.2 20.0 24.7% 4.4% SABB Takaful 2.7 1.8 2.1 -24.8% 15.5% 1.3 0.6 0.7 -47.0% 19.6% SAICO 17.4 11.5 16.4 -5.6% 42.4% 15.5 9.8 14.4 -6.9% 46.6% Wafa Insurance 8.7 2.9 (3.6) -141.3% -222.5% 8.4 1.1 (5.2) -162.3% -590.6% Gulf Union (0.2) 5.8 2.0 -954.9% -65.3% (0.9) 4.0 0.9 -207.5% -76.7% ATC 7.1 11.1 8.7 22.5% -21.5% 5.8 9.4 8.7 49.9% -7.8% Al Ahlia (8.6) 4.1 3.2 -136.6% -22.6% (9.3) 3.4 2.0 -121.6% -41.6% ACIG 4.7 6.6 3.9 -16.4% -40.5% 3.8 6.1 3.0 -22.5% -51.6% AICC (1.7) 3.6 3.9 -328.4% 6.0% (1.7) 1.6 2.5 -248.2% 60.5% Trade Union 27.2 25.1 16.7 -38.6% -33.6% 25.7 22.6 16.7 -35.0% -26.2% Solidarity 14.1 12.9 19.6 39.1% 51.7% 13.4 13.1 17.8 33.1% 36.0% Wataniya 8.0 7.7 8.2 1.9% 6.7% 7.4 6.9 5.8 -21.6% -15.2% Amana Insurance 7.9 (1.8) 14.6 85.3% -916.1% 7.6 (2.3) 15.1 98.2% -757.6% AXA-Cooperative 11.2 14.8 12.6 12.5% -15.1% 7.5 10.8 8.8 16.8% -18.4% Gulf General 7.0 11.3 4.6 -33.4% -59.0% 6.7 9.8 3.4 -48.8% -65.1% Buruj 8.6 27.8 24.0 180.5% -13.7% 7.0 25.1 21.4 203.6% -15.0% Al Alamiya 12.2 7.1 8.8 -27.8% 23.9% 10.0 6.4 4.8 -51.6% -24.3% Saudi Re 2.7 13.4 (0.3) -110.0% -102.0% (0.7) 9.4 (3.6) 436.8% -138.6% UCA 26.1 27.4 (2.2) -108.3% -107.9% 23.1 25.9 (3.7) -115.9% -114.1% Bupa Arabia 260.4 145.8 217.0 -16.7% 48.8% 244.5 127.0 198.2 -18.9% 56.1% Sagr Insurance 26.7 6.9 7.5 -71.7% 8.8% 21.8 2.3 5.1 -76.5% 123.5% Chubb Arabia 9.5 9.8 7.8 -17.6% -20.3% 7.6 8.1 5.8 -23.9% -28.7% Enaya (6.3) (3.5) 0.7 -111.6% -120.9% (6.5) (4.1) 0.1 -102.0% -103.1% Al Rajihi Takaful 29.6 41.1 58.7 98.5% 42.9% 26.5 38.1 54.0 103.8% 41.6% Alinma Tokio M (1.1) (7.5) (3.2) 193.4% -56.7% (2.2) (8.5) (4.3) 94.6% -49.7% Total 894.2 309.8 756.7 -15.4% 144.2% 802.1 197.9 664.1 -17.2% 235.5% Source: Argaam, *NM: Not meaningfull Insurance Sector Report November 2017 Please read Disclaimer on the back Sector report | KSA | Q3-2017

APPENDIX 4 Market Cap PE PB Dividend Yield Tawuniya 11,920.00 15.3 4.0 4.3% METLIFE AIG ANB 525.35 NM* 2.4 -- Jazira Takaful 895.30 29.3 2.3 2.03% MALATH INSURANCE 651.00 NM* 5.9 -- MEDGULF 1,175.60 NM* 2.5 -- Allianz SF 670.80 22.6 2.8 -- Salama 604.25 9.6 2.5 -- WALAA 1,290.80 9.3 2.4 -- Arabian Shield 830.60 7.5 2.3 4.8% SABB Takaful 765.34 90.3 2.1 -- SAICO 437.50 8.3 1.3 -- WAFA Insurance 231.56 17.8 1.9 -- Gulf Union 238.35 7.5 1.5 -- ATC 518.65 13.5 2.2 1.63% Al-Ahlia 169.60 19.4 1.5 -- ACIG 319.40 29.3 2.3 -- AICC 483.10 27.6 1.9 -- Trade Union 503.25 8.4 1.4 -- Sagr Insurance 563.50 22.0 1.2 9.09% U C A 602.70 8.5 1.4 -- Saudi Re 640.00 10.2 0.8 -- Bupa Arabia 7,808.00 13.2 3.5 1.50% AlRajhi Takaful 2,440.00 14.7 4.4 -- CHUBB 455.80 11.2 1.8 -- AXA Cooperative 869.40 16.6 1.6 -- Gulf General 311.60 12.2 1.5 -- Buruj 795.75 6.4 2.1 1.70% Al Alamiya 923.20 24.7 2.6 -- Solidarity 490.25 8.2 1.7 -- Wataniya 537.80 10.4 2.5 -- Amana Insurance 335.72 14.0 2.6 -- Enaya 436.80 NM* 2.7 -- Alinma Tokio M 548.10 NM* 2.0 -- Sector 39,989.07 13.4 2.7 --

Source: Argaam, *NM: Not meaningfull, prices as of 27th Nov 2017 Head of Research Analyst Analyst Analyst Analyst Talha Nazar Sultan Al Kadi Jassim Al-Jubran Waleed Al-Jubayr Muhanad Al-Odan +966 11 2256115 +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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