The Saudi insurance industry's profits (after zakat & tax) declined significantly by 36% year-on-year to SAR2.0bn ($533m) in 2025 from SAR3.2bn in 2024, according to BADRI Management Consultancy, an international actuarial and risk management consulting firm.
In its report, titled “KSA Listed Insurance Industry Performance Analysis – 2025” and based on the preliminary financial statements of 23 listed insurers, BADRI says that performance divergence in the sector remained pronounced.
While the top five insurers recorded a modest 3.1% increase in profits (from SAR2.7bn to SAR2.8bn), the remaining companies experienced a sharp 262% deterioration, swinging from a collective profit of SAR475m to a loss of SAR771m. A total of 11 insurers reported net losses during the year, compared to only two in the prior year.
Profitability pressures
The 2025 financial results of the listed insurers continue to reflect the challenging dynamics observed throughout the year, with profitability pressures persisting across most insurers.
Despite solid top-line growth, weak underwriting performance and declining investment income weighed heavily on overall results. “Without meaningful corrective action on pricing—particularly in motor and medical segments—the industry remains on course for continued pressure heading into 2026,” BADRI cautioned.
Insurance revenue for the listed companies grew by 9% to SAR69.6bn, supported by a 10% increase among the top five insurers, while the rest of the market also posted moderate growth of 8%. However, this expansion did not translate into improved underwriting outcomes.
The Insurance Service Result declined by 31%, from SAR2.7bn in 2024 to SAR1.9bn in 2025. While leading players demonstrated resilience with continued growth, the majority of insurers recorded significant deterioration, highlighting ongoing pressure from underpriced portfolios and rising claims costs.
Investment income added to the strain, declining by 7% to SAR2.5bn. Although the top three insurers reported strong investment performance and absolute growth, overall returns remained insufficient to offset weakening underwriting results. For many companies, investment income provided only partial relief, with several still reporting negative overall insurance results.
Excluding the top three insurers, the industry effectively moved into a loss position of around SAR0.6m, compared to a profit of SAR0.7m in 2024—marking a significant deterioration. Given historical trends, such widespread losses are likely to trigger pricing corrections across key business lines. However, without a firm shift toward technical discipline and sustainable pricing strategies, the sector’s recovery prospects remain limited in the near term.
To download the complete report please click on this link.