The Saudi insurance sector continued to expand in 2025, with gross written premiums increasing by 11% to SAR84.3bn ($22.5bn) compared to 2024, according to the Insurance Authority in its latest flagship yearly report, "Saudi Insurance Market Report 2025".
This growth was supported by the broader momentum of Vision 2030 and the objectives of the National Insurance Sector Strategy, said the Insurance Authority’s CEO, Engineer Naji Al-Faisal Al-Tamimi, in a foreword to the report. He added, “This growth reflects the sector’s increasing role in protecting individuals, businesses and national economic activities.”
The report notes that the sector remained profitable, recording net income of SAR1.9bn; however the profitability declined compared to 2024.
The Saudi insurance sector remained adequately capitalised at an aggregate level in 2025, with an Average Solvency Coverage Ratio of 156% compared to 165.7% in 2024.
Performance of different insurance branches
Mr Al-Tamimi also said that the insurance industry “remains stable in aggregate, but where performance differs materially across lines of business and insurer segments. Motor pricing discipline and compliance with actuarial standards remain central to sustainable profitability”.
He continued, “Health Insurance continued to expand population coverage, strengthening protection for beneficiaries and supporting broader access to healthcare. As this important line grows, the focus must remain on affordability, service quality and ensuring that premiums, claims management and provider cost trends remain balanced.
“Aggregate solvency remains adequate, but capital resilience depends increasingly on buffer depth, capital quality and the ability to generate capital through sustainable underwriting performance. Investment income supported profitability in 2025, but rate easing may reduce this cushion in 2026.”
2027
Looking ahead, Mr Al Tamimi said that the operating environment is expected to be more demanding. Claims inflation, Motor pricing discipline, Health repricing, investment income normalisation, reinsurance availability, geopolitical developments and readiness for the Risk-Based Capital framework on 1 January 2027 will all shape sector outcomes.
He said that the next phase of sector development requires a more nuanced assessment of performance. “As the market matures, growth must be assessed not only by premium volume, but also by the quality and sustainability of that growth. A resilient insurance sector is one where growth is profitable, capital-supported, policyholder-positive and capable of withstanding stress,” he added.