Al Alamiya, Cooperative Insurance Company, announced a net profit before Zakat of $386,064 (1.45 million riyals) in 2020, down from $6.3 million (23.7 million riyals) in 2019.

The company's Board of Directors recommended that no dividend will be paid to for the 2020 fiscal year. To continue the business's growth the decision must be approved by general assembly of the corporation.

Earning Highlights

· Profits of policyholders' investments dropped 45.5 percent to $933,157.

· Net income from shareholders' capital assets fell 26.8% to $1.86 million in 2020.

· The company's gross written premiums fell by 13% to $50.9 million (191 million riyals), its net written premiums dropped by 47.67 percent to $14.13 million (53 million riyals).

· Lower net premiums, lower income in investment, high allowance for debts, and higher general and administrative expenses, contributed to the drop in net profits.

· Lower net claims, higher reinsurance fees, lower policy acquisition expenses, and higher other profits offset the decrease in earnings.

Fall in premiums

The Saudi Central Bank (SAMA) stated that the Kingdom's insurance sector that gross written premiums fell slightly to $2.35 billion (8.8 billion Riyals) in the third quarter of 2020.

Although it’s a small decline, the insurance sector's net income rose 1.9 percent to $78.61 million (294.9 million riyals), according to the central bank.

Key background

Al Alamiya, established in 2009 in Saudi Arabia, has assets worth $215 million and gross written premiums of $45 million. With a market value of $141 million ,it ranked 20th on Forbes Middle East's Most Valuable Insurance Companies in the Middle East 2020 list.