RIYADH: One of Saudi Arabia's biggest insurers reported a jump in earnings after it paid out fewer motor claims last year as the pandemic forced millions to stay at home.
AXA Cooperative Insurance net profit rose by almost 54 percent to SR166.8 million ($44.5 million) last year, the company said in a filing to the Tadawul stock exchange.
While its gross written premiums edged up only marginally over the year, its net incurred claims fell by 6.5 percent.
Its motor insurance business as well as property and casualty claims were the main factor behind the improvement of the loss ratio.
Still, the improved performance is set against a backdrop of tough competition in the overcrowded regional insurance sector.
"Ongoing high competition, a contraction in population of about 4 percent across the GCC on average, and economic uncertainty will weigh on growth prospects and earnings, while elevated asset risk could lead to further volatility in the coming quarters," S&P Global Ratings said in a report last month.
The fall in motor insurance claims is a trend that has been witnessed worldwide. Data from the Association of British Insurers show that the number of motor insurance claims settled last year in Britain dropped by 19 percent, as vehicles sat idle.
Saudi motor insurer boosts profit as pandemic means fewer car crash claims
https://arab.news/9bwaj
Saudi motor insurer boosts profit as pandemic means fewer car crash claims
- Premiums flat but motor claims drop
- Insurance sector remains overcrowded
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
