Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×

Al Rajhi Takaful Insurance.pptx

Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Wird geladen in …3
×

Hier ansehen

1 von 17 Anzeige
Anzeige

Weitere Verwandte Inhalte

Aktuellste (20)

Anzeige

Al Rajhi Takaful Insurance.pptx

  1. 1. Al Rajhi Takaful Insurance • STUDENT’S NAME • PROFESSOR’S NAME • COURSE • DATE
  2. 2. Insurance Sector in Kingdom of Saudi Arabia • Characteristics • High competition • Rapid growth • Diverse product offerings • Strict regulations • Market Leaders • Tawuniya: 22.5% • Bupa Arabia: 22.2% • Regulated by Saudi Arabian Monetary Agency • Must adhere to Islamic laws
  3. 3. General Overview Al Rajhi Takaful conducts sharia-compliant insurance operations in KSA Established in 2008 Headquartered in Riyadh Offers insurance services that promote Islamic religious teachings Vision is to reinvent insurance for KSA, achievable by delivering protection to customers through reliable, innovative, and affordable solutions Significant market share A Board of Directors
  4. 4. Leadership • Board of directors (BOD) ensures formulation and implementation of business strategies • BOD supervises the actions of the top executives • Chairman: Abdallah Sulaiman • Dedicated Sharia department to provide family-friendly, sharia-compliant services • Net profit: • 2018: SAR 165,527 • 2019: SAR 86,185 • 2020: SAR 227,046 • A significant dip in profitability in 2019, but significant gains in 2020 • Increase in 2020 profit attributable to significant improvement in operational efficiency
  5. 5. Service offerings Wide range of service offerings for individuals, families, and enterprises • Medical • Motor • Travel • Life • Others Insurance offered for: • Wafi Basic • Wafi Smart • Wafi Comprehensive Motor insurances Medical malpractice insurance
  6. 6. More In-Depth Analysis • Offers high-quality, customer-centric, and sharia-compliant services • Majority in Saudi Arabia are Islamic followers • High demand for products and services that understand and respect the needs of the people • A dedicated Sharia audit committee routinely evaluates the operations and financial reports • Established a niche among highly religious people of KSA • 9% market share in KSA • Highly competitive market requires Al Rajhi Takaful to continually gauge consumer needs and improve its services
  7. 7. Financia l Ratio Analysis Indicator 2020 2019 Gross margin ratio 22.93% 10.66% Net margin ratio 9.63% 3.25% ROE 20.41% 9.85% Risk retention ratio 0.85 0.95 Claims ratio 0.68 0.83 Loss ratio 0.69 0.84 Debt ratio 0.74 0.76 Equity ratio 0.26 0.24 Debt-to-equity ratio 2.92 3.12
  8. 8. Profitability Ratios 0 0.05 0.1 0.15 0.2 0.25 Gross margin ratio Net margin ratio ROE Figure 1: Profitability ratios, 2019-2020 2019 2020
  9. 9. Insurance Ratios 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Risk retention ratio Claims ratio Loss ratio Figure 2: Risk retention, claims, and loss ratios, 2019-2020 2019 2020
  10. 10. Solvency Ratios 0 0.5 1 1.5 2 2.5 3 3.5 Debt ratio Equity ratio Debt-to-equity ratio Figure 3: Al Rajhi Takaful's solvency ratios, 2019-2020 2019 2020
  11. 11. Other Financia l Analysis Premiums growth: 6.35% Higher cost efficiency in 2020 than in 2019 Higher Revenue in 2019 as compared to 2020 Lower profits in 2019 as compared to 2020
  12. 12. Comparative Analysis (2020) M E D G U L F • Margin ratio: 2.23% • Risk retention ratio: 0.63 • Debt ratio: 0.8 A L R A J H I TA K A F U L • Margin ratio: 9.63% • Risk retention ratio: 0.85 • Debt ratio: 0.74
  13. 13. Strengths and Weakness es Strengths • Cost efficiency • Debt management • Higher profits • Fewer costs associated with interest payments • Declining risk retention ratio Weaknesses • Declining revenue • Sub-optimal re-insurance level • 85% risk retention
  14. 14. Challenges and Opportunities Challenges • Over 30 competitors • Lower profit margins • Bupa Arabia and Tawuniya account for about 45% of the market share • Need for maintaining a high customer satisfaction rate Opportunities • Supportive government regulations • KSA government mandates health and motor insurance • High demand due to government policies • Recovering global economy
  15. 15. Recommendations Increase Increase total revenue Increase Increase gross written premiums through aggressive marketing strategies Maintain Maintain the current cost efficiency and debt management strategies Improve Improve earnings per share Maintain Maintain a low- debt ratio
  16. 16. Works Cited Ali, Anis, and Mohammad Rumzi Tausif. “Service Quality, Customers’ Satisfaction, and Profitability: An Empirical Study of Saudi Arabian Insurance Sector.” Investment Management and Financial Innovations, vol. 15, no. 2, 2019, pp. 232-247, https://doi.org/10.21511/imfi.15(2).2018.21 Al Rajhi Takaful. Annual report, 2020. https://www.alrajhitakaful.com/Shared%20Documents/financial- 2020_EN.pdf MEDGULF. Annual report, 2020. https://www.medgulf.com.sa/Library/Assets/Gallery/Investorrelations/Annual- report-2020-En.pdf SHMA Consulting. Performance Indicators of KSA Insurance Companies. 2018, https://shmaconsulting.com/wp- content/uploads/2019/07/Quantitative-analysis-KSA-2018.pdf
  17. 17. Thank You!

×