‎Walaa market share at 5% of GWP; Here are profit derivers: CEO

‎Walaa market share at 5% of GWP; Here are profit derivers: CEO

Walaa Cooperative Insurance Co.’s market share stood at 5% of the gross written premiums (GWP) by the end of the second quarter of 2023, the company’s CEO Johnson Varughese told Argaam.

He added that medical, energy and protection and savings lines contributed the most to the company's profitability during Q2 2023, noting that the period’s profit is mainly driven by improved insurance service results and investment performance in the Saudi equity market and higher interest rates returns on deposits.

Furthermore, the implementation of IFRS9, where investments were reclassified from other comprehensive income to the income statement, positively impacted the net profits compared to the same period a year earlier, the CEO stated.

Motor insurance’s GWP fell by SAR 8 million (6%) during Q2 2023 as compared to Q2 2022 but rose by SAR 26 million (25%) as compared to Q1 2023.

Meanwhile, medical insurance’s GWP for Q2 2023 inched up by SAR 55 million (28%) year-on-year (YoY) and grew by SAR 123 million (99%) quarter-on-quarter (QoQ), he indicated.

Commenting on the financial impact on the company after the merger with SABB Takaful, he pointed out that there was an increase of SAR 294 million in shareholders’ equity (includes an increase in the company’s capital of