Riyadh - Mubasher: The Saudi insurance market appears to have finally turned the corner following a period of underwriting volatility, according to analysis by A.M. Best.

The recent report by A.M. Best said that the recent financial discolu disclosures by insurers in Saudi Arabia shows a marked improvement in operating performance in 2016, with the market more than doubling its profits during the year.

Profits for 2016 totalled SAR 2.5 billion ($671 million), more than double 2015’s profits of SAR 1.0 billion ($278 million), the report indicated.

In 2015, profit was primarily driven by the strong operating performance of market leaders, while the rest of the market generally produced weak earnings and many companies generated operating losses.

In contrast, there was a turnaround in 2016, with the vast majority of insurers generating positive operating results. As out of 33 primary insurers in KSA, 27 showed an operating profit in 2016, compared to 19 in 2015.

The findings are published in a new report by A.M. Best, titled, “Stability Returns to Saudi Insurers but Growth Prospects Remain Cloudy.”