The total insurance premiums written on property and against fires in Saudi Arabia during the first quarter of this year amounted to about 739.9 million riyals, recording a growth of 11.6 percent on an annual basis, compared to about 663 million riyals for the same period.
Property insurance is defined as insurance on all types of buildings, inventory, or even machinery and equipment, which are insured against risks related to theft or disasters according to the mechanism of the insured document, as well as against fire.
According to the monitoring of the reports unit in the newspaper “Al-Eqtisadiah” based on the data of insurance companies as well as the Saudi Central Bank “Sama”, property insurance premiums during the first quarter recorded a record level, accounting for about 5.78 percent of the total insurance activities, compared to about 5.2 percent during the period. Same from 2020.
The insurance companies retained about 24.5 percent of the total insurance premiums for property and fire during the period, which constitutes about 181.4 million riyals, while the rest of the insurance premiums were assigned to reinsurance companies, whether local or international, while the retention rate for the same period was at 21.3 percent.
Net claims during the period amounted to about 44 million riyals, which represents a loss of about 24.3 percent of the net earned premiums, which is more than the same period of 20.1 percent.
The number of insurance policies issued during the first quarter of this year jumped by about 500 percent, to reach about 23.4 thousand documents, compared to about 5.22 thousand documents for the same period last year 2020.
Property insurance premiums in the fourth quarter of last year amounted to about 416.37 million riyals, which constituted about 4.88 percent of the total activities during the quarter, meaning that premiums grew by 77.7 percent during the first quarter compared to the previous quarter.
The first quarter is the most important in the property insurance premiums, as it represents approximately 34 percent of the total premiums for the year during the past five years, while it constituted 31.4 percent in the first quarter of last year of the total premiums during the same year.
Economic Reporting Unit