Gross written premium declined 42% Q-o-Q and 16% Y-o-Y Net earned premium rose 2% Q-o-Q and 22% Y-o-Y on the back of strong GWP growth in the preceding quarters Loss ratio was under control at 70%   Profit before tax up 25% Y-o-Y, meets estimate. Tawuniya reported a profit before tax of SAR283mn for 3Q16, up 16% Q-o-Q and 25% Y-o-Y, and in line with our SAR282mn estimate. However, the gross written premium (GWP) was quite weak, as it declined 42% Q-o-Q and 16% Y-o-Y, likely due to i) loss of a large account, owing to tactical skirmishes between the large insurers; ii) subdued macro backdrop; and iii) seasonal factors. The drop in GWP comes after a strong 1H, where GWP rose 19% Y-o-Y in 2Q16 and 13% in 1Q16. We estimate that Tawuniya’s loss ratio was 70% in 3Q16, broadly in line with the loss ratio in 3Q15. The loss ratios for Tawuniya tend to lower in the second half of the year. (Earnings release, Shabbir Malik, Murad Ansari)   Tawuniya: SAR78.76 as of 16 October 2016, Rating: Buy, FV: SAR117.00 per share, MCap: USD2,100mn, TAWUNIYA AB / 8010.SE