SICO Perceives Strong Outlook for Major Players in Saudi Insurance Market
In the short-term, SICO perceives a positive outlook for the insurance market. Insurers in the healthcaresector should expect a temporary boost to their earnings owing to lower claims in 2Q20 as a result of lessfrequent hospital visits due to the coronavirus lockdown. As the lockdown eases, SICO estimates that morethan 80% of those deferred claims will spill over to the second half of the year. Both Bupa Arabia andTawuniya have booked higher claims in the first half of the year to future earnings volatility, contrary toindustry trends. Insurers in the motor sector should not expect higher claims on the back of the lower claimsduring lockdown. These benefits, however, will boost earnings, although they might be partially offset by thetwo months premium waiver offered by the insurers. This is the view of a recent report published by SICOResearch, a division of Bahrain-based regional asset manager, broker and investment bank SICO BSC (c).
For the full release in English & Arabic, click here
