The first-quarter financial results of insurance companies in Saudi Arabia signal an early but cautious recovery from the widespread pressures observed throughout 2025, according to BADRI management consultancy, an international actuarial and risk consultancy.
In its report, “KSA Listed Insurance Companies – 1Q 2026 Preliminary Report”, BADRI also said that strong top-line growth was accompanied by meaningful underwriting gains — a departure from prior year trends — and a marginal increase in investment income added further support to overall results.
The KSA insurance industry's profitability improved by 24% year-on-year to SAR815m ($216m)in 1Q2026 from SAR659m in 1Q2025.
Performance divergence, however, remained a defining feature: the top five insurers collectively accounted for virtually all of the industry's profit at SAR869m, a 11.5% increase from SAR779m in 1Q2025. This means that the remaining 18 insurers analysed reported a combined loss of SAR54m.
Excluding the top three insurers, the rest of the industry moved from a collective loss of approximately SAR74m in 1Q2025 to a combined profit of around SAR26m in 1Q2026 — a notable turnaround, though the absolute level of profitability outside the top tier remains thin. GIG and Medfulf, which ranked fourth and fifth most profitable companies, respectively, in 1Q2026, increased their combined net profit to around SAR80m in the first quarter of this year.
A total of eight insurers reported net losses in 1Q2026, marginally up from seven in the corresponding quarter in 2025.
Insurance revenue for the listed companies grew by 15% year on year to SAR18.7bn in 1Q2026, reflecting strong premium volume growth across most segments.
Notably, this top-line expansion did translate into improved underwriting outcomes — the Net Insurance Service Result grew by 26% from SAR647m to SAR816m — marking a reversal of the deteriorating trend seen in full-year 2025. That said, 10 out of 23 reporting companies still recorded negative net insurance results, underscoring that underpriced portfolios and rising claims costs have not been fully resolved across the market.
Investment income provided meaningful additional support, rising by 7% to SAR684m from SAR639m in 1Q2025. Unlike in full-year 2025 where investment income declined and offered only partial relief, 1Q2026 investment performance amplified — rather than merely cushioned — the underlying underwriting improvement.
Given the still-elevated number of loss-making companies and the concentration of earnings, the recovery is not yet broad-based enough to signal a structural shift. Continued pricing discipline, particularly in motor and medical lines, will be essential to sustaining this momentum through the remainder of 2026.
These figures are based on preliminary financial disclosures, and a more detailed analysis will be undertaken once the complete financial statements are published by all listed insurers.