DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/qwrsdk/saudi_arabia) has announced the addition of the "Saudi Arabia Insurance Report Q3 2012" report to their offering.

The Saudi Arabia Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Saudi Arabia's insurance industry.

The Saudi Arabia Insurance Report considers the prospects for both life and non-life insurers in the country. As of mid-2012, the latest results from Saudi Arabia's listed insurance companies (in relation to 2011) highlight the weaknesses rather than the strength 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 consequence of a desperate bid by too many companies, particularly the recent entrants to the market, to boost market shares regardless of profitability.

Previously, we had had some confidence that non-life penetration would rise quite sharply thanks to the growing acceptance of insurance. Over the last five years, the main catalyst for the development of the sector has been the rise in (compulsory) health insurance premiums, which have had a positive impact on both segments. As is the case with our other insurance reports, we include health insurance in the non-life segment.

Over the last quarter, BMI has made the following changes:

- Our analysis incorporates BMI's latest forecasts for Saudi Arabia's economy, including details in relation to auto sales and trends in the healthcare sector.

- The analysis incorporates the latest comments on developments of Tawuniya, as well as data pertaining from Ernst & Young's latest World Takaful Report, which was published in Q212.

For more information visit http://www.researchandmarkets.com/research/qwrsdk/saudi_arabia

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Insurance

Source: Research and Markets