The impact of intense price competition in medical and certain motor segments are now coming through in the Saudi insurance market, said Badri Management Consultancy.
In the report titled ‘KSA – Listed Insurance Industry Performance Analysis – 1Q2025’, Badri says that with a few notable exceptions, 1Q2025 has been a disastrous one. Without sharp price corrections, 2025 will be a very difficult year of losses for many.
The insurance industry’s profitability (after-zakat & tax) declined 28% in the first three months of 2025 to SAR0.6bn ($160m) from SAR0.9bn in 1Q2024. Performance was mixed. The top three insurers – BUPA, Tawuniya and Al Rajhi – saw profit gains of 6%, 33%, and -18%, respectively, totaling SAR0.7bn. Meanwhile, 19 insurers reported a profit drop averaging -119%, totaling SAR401m. While GIG, SAICO and Enaya posted notable profit gains, many others faced significant declines.
Total insurance revenue grew by 6%, increasing from SAR16bn to SAR17 bn. Without the top three industry players, the industry’s growth was 5%.
Overall underwriting performance declined, with insurance service results decreasing by 24%, from SAR816m in 1Q2024 to SAR620m in 1Q2025. 18 companies reported a significant drop in insurance service results compared to the prior year. Investment income dropped by 17%, from SAR787m in 1Q2024 to SAR652m in 1Q2025, often balancing weaker underwriting outcomes.
Excluding the top three companies, the industry recorded a loss of SAR96m, down from SAR219m in 1Q2024, reflecting a 144% drop. Based on recent history in this market, with results such as these, price rises often follow. M