The 25 listed direct insurers in Saudi Arabia reported a combined profit after zakat of SAR3.2bn for 2024, 2% lower than the SAR3.3bn chalked up for 2023. The profits fell despite the combined investment income jumping 21%, from SAR2.6bn in 2023 to SAR3.1bn in 2024, according to an analysis by Badri Management Consulting, an international actuarial and risk consultancy firm.
In its report, 'KSA – Listed Insurance Industry Performance Analysis – Year 2024', Badri said, “At the market level, there’s now a heavier reliance on investment income, which made up 97% of net profit in 2024, up from 79% last year.”
Badri warned, “Despite past gains, the outlook is grim as price wars deepen in motor and medical. If not addressed, industry profit could fall well below 2023 levels. Still, protection & savings growth stands out, offering long-term profit potential.”
Profit
The top three companies – BUPA, Tawuniya and Al Rajhi - posted profit gains of 24%, 66%, and 1% respectively, totaling SAR0.6 bn. Meanwhile, 19 companies saw profit declines averaging -62%, totaling SAR741m. Apart from strong gains by Arabian Shield, LIVA and Wataniya, several insurers saw steep profit declines. Excluding the top three, the sector posted SAR670m in profit, down from SAR1.4bn in 2023—a 51% drop. This likely stems from rising price competition, especially in motor TPL and medical SME.
Underwriting performance
The overall underwriting performance of listed direct insurers in Saudi Arabia improved slightly, with insurance service results rising to SAR2.7bn ($718m) in 2024 from SAR2.6bn in 2023, an increase of 4%. 16 insurance companies showed a sharp decline in insurance service results compared to the previous year.
Total insurance revenue rose by 14%, from SAR57bn to SAR65bn. Excluding the top three, industry growth was 8%. Gross written premiums jumped by 15% from SAR64bn to SAR73bn.
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