Islamic Finance

Tawuniya wins contract with Saudi ministry for foreign haj, umrah pilgrims insurance services

The Company for Cooperative Insurance, or Tawuniya, has won a contract with the Saudi ministry of hajj and umrah to provide insurance services for foreign pilgrims for four years.

Tawuniya expects the contract revenues to be greater than 5 per cent of its 2018 annual gross written premiums, it said in a bourse filing on Wednesday.

“It is expected to have a positive financial impact on the gross written premiums and financial results of the company that will be reflected gradually from the first quarter of 2020,” said Tawuniya.

Tawuniya earned 7.64 billion Saudi riyals ($2.04 billion) in gross written premiums in 2018, according to its annual report. It made a pre-tax loss of 213.34 million riyals last year.

The company reported 4.46 billion riyals in GWP and 116.43 million riyals in pre-tax profit for the first six months of 2019. These were up 15.71 per cent and 45.18 per cent, respectively, compared to the same period in 2018.

The contract with the ministry will be on a co-insurance basis with the insurance sector and is subject to approval by the Saudi Arabian Monetary Agency.

 ($1 = 3.75 Saudi riyals)

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