Key Insights And Key Risks As of mid-2013, the latest results from Saudi Arabia’s listed insurance companies (in relation to 2012) highlight the weaknesses rather than the (undoubted) strengths of the sector. Although insurance is very underdeveloped by most metrics, top-line growth in premiums has been mixed. Companies have had to deal with surging claims expenses, which in some cases have been exacerbated by a deliberate policy of increasing the retention ratio. Generally, though, retention ratios remain low. Investment earnings have been mixed. Worst of all, prices and margins have been compressed by cut-throat competition. This appears to be the …
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