Tawuniya posts net profit of 101.5 million riyals

Tawuniya-LogoOne of the leading insurers in Saudi Arabia- Tawuniya has announced its financial figures for the fourth quarter reporting a net profit of 101.5 million riyals compared to a net loss of 34.6 million riyals in the previous year. However, profit it made is not in line with its own forecasts as floods in Jeddah in December led the company to miss its targets.

The insurance firm, as told by Ahmad Alshalan, Vice-president for sales and marketing, suffered a loss of 38 million riyals due to floods in Jeddah. Mr. Alshalan informed Reuters during an interview, "Damage for construction, warehouses, property and projects was 30 million riyals while for vehicles the loss amounted to some 300 vehicles valued at 8 million riyals."

The floods in the second most popular city in the Kingdom claimed 1125 lives besides large scale loss of immovable property and material damage. Alshalan added, "The financial damage is very low for insurance firms. We think that about 6,000-7,000 vehicles have been damaged by the floods. This speaks volumes about the low penetration of insurance in the Saudi Arabia."

Meanwhile, stock price of the insurer performed better than stocks' index and the Saudi stock exchange's benchmark by reporting a gain of 6.3 per cent in 2010.