Saudi Arabia’s Insurers Post 13% Profit Rise as Sector Recovery Gains Pace

Saudi Arabia’s listed insurance companies recorded a 13 per cent increase in combined net profit in the first half of 2026, supported by improved underwriting results and stronger investment income as the industry continues its recovery.

Net profit attributable to shareholders reached about SR1.5 billion ($400 million), up from SR1.3 billion a year earlier, according to Moody’s Ratings.

Insurance revenue from 24 listed insurers rose around 14 per cent to nearly SR38.5 billion, helped by continued demand for motor and medical insurance.

The latest results add to signs of a broader recovery in Saudi Arabia’s insurance industry. Gross written premiums across the wider market increased 10.7 per cent to SR84.3 billion in 2025, according to the Insurance Authority. Health and motor insurance generated almost 89 per cent of the sector’s premium growth during the year.

The industry recorded net income of SR1.9 billion in 2025, while its average solvency margin stood at 156.7 per cent.

Moody’s said the improvement in listed insurers’ earnings was driven by stronger underwriting performance and a 17 per cent rise in investment income.

The recovery was particularly visible among smaller and mid-sized companies, many of which reduced losses or returned to profitability. The five largest insurers posted combined earnings of about SR1.6 billion, broadly unchanged from a year earlier.

Twelve of the 24 listed insurers reported higher profits than in the same period last year, while nine remained loss-making, showing that financial pressure continues for parts of the industry.

Among the five largest insurers, Medgulf recorded the strongest improvement. Tawuniya, however, reported lower profit, offsetting gains at some of its major competitors.

The other 19 listed insurers reduced their combined net loss to about SR100 million from roughly SR300 million a year earlier. Several companies either returned to profit or substantially reduced their losses.

Walaa Cooperative Insurance recorded the biggest earnings turnaround, posting a profit of around SR43 million compared with a loss of approximately SR117 million a year earlier.

Investment income also provided support. Combined investment income, excluding unit-linked investment results, climbed 17 per cent to SR1.4 billion from SR1.2 billion. All five of the largest insurers reported year-on-year growth in investment income.

The market remains highly concentrated. Tawuniya, Bupa Arabia, Al Rajhi Co. for Cooperative Insurance, Medgulf and Wataniya accounted for about 77 per cent of insurance revenue as of June 30. Tawuniya and Bupa Arabia alone represented roughly 59 per cent.

Sector equity rose 7.4 per cent to around SR28 billion by June, helped mainly by retained earnings, capital injections and balance-sheet expansion linked to mergers.

However, several smaller insurers reported significant declines in shareholders’ equity and faced concerns over accumulated losses and solvency.