Tawuniya CEO Othman Alkassabi blamed three factors, higher claims, health seasonality, and two bad motor policies, for the insurer's 31% Q2 profit drop. Investment returns improved on a shift to low-risk assets.
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Tawuniya CEO Othman Alkassabi blamed three factors for the insurer's sharpest quarterly profit decline in more than two years: higher claims in general insurance, the seasonal nature of the health business, and two motor insurance policies underwritten last year based on outdated market assumptions.
The CEO told Asharq Bloomberg the two motor policies will not be renewed, and the losses relate to premiums recognized in the prior year. Tawuniya posted a 31% year-on-year drop in Q2 net profit to SAR 321.8 million, according to Argaam data. First-half profit fell 16% to SAR 609.8 million.
Revenue growth continued in the second quarter, driven by sales. The profit decline was concentrated in insurance operations, not the investment book. Alkassabi said investment returns improved during the first half, citing a shift toward low-risk, long-term assets.
The company is developing new products and expanding into adjacent businesses. Alkassabi said Tawuniya entered the credit insurance market, which he expects to increase banks' lending capacity by as much as 15%. The company also continues to expand digital services alongside Mena Health, Mobility, and Shehab, which runs auto repair workshops and spare parts operations.
The CEO described the current period as a new strategic phase focused on building an integrated ecosystem of services beyond the traditional insurance model.
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