The Saudi insurance industry's profitability (after zakat & tax) rose by 26% to SAR2.2bn ($586m) in 1H2024 from SAR1.7bn in the corresponding half in 2023.
Looking into details, the financial performance of the various insurance companies was mixed, according to Badri Management Consultancy, an international actuarial consulting company.
In its report, titled “Listed Insurance Industry Performance Analysis – First Half 2024”, Badri states:
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The Top Three companies — BUPA, Tawuniya, and Al Rajhi — saw profit increases of 36%, 105%, and 47%, respectively, totalling SAR1.6bn.
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Excluding the Top Three, the industry reported a profit of SAR533m, down from SAR693m in 1H2023, a 23% decrease. This likely reflects the impact of increased price competition, particularly in the Motor TPL and medical SME segments.
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14 companies reported a combined net profit of SAR261m, representing an average decline of 48%.
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Apart from some notable increases in profit for Wataniya, Arabian Shield, and ACIG, there are some worrying signs for many others with sharp falls in profit.
In the first half of 2024, the 25 listed companies saw an 18% rise in insurance revenue, reaching SAR32bn from SAR27bn in the corresponding half in 2023. These figures are reported after adjusting for Expected Credit Losses (similar to Provision for Doubtful Debts). Without the Top Three, the industry's growth was 10%.
Overall underwriting performance improved slightly, with insurance service results rising to SAR2.0bn in 1H2024 from SAR1.9bn in 1H2023, an increase of 3%. However, 14 companies showed a sharp decline in insurance service results compared to the previous year
Investment income grew by 29%, from SAR1.2bn in 1H2023 to SAR1.6bn in 1H2024, offsetting weaker underwriting results.
To read the complete report, please click on this link.