The insurance industry's profitability (after-zakat & tax) in the Kingdom of Saudi Arabia (KSA) stood at SAR3.0bn ($800m) in the first nine months of 2024, growing by 15% from SAR2.6bn in the corresponding period in 2023, according to a report by Badri Management Consultancy which provides consulting services in the actuarial, strategic and technology fields.
The report, titled “KSA Listed Insurance Industry Performance Analysis 2024 Q3 — based on preliminary results”, says that the financial performance among the 25 listed insurers was mixed.
The top three insurers — BUPA, Tawuniya, and Al Rajhi — saw profit gains of 34%, 62%, and 29%, respectively. Their combined profits for the January-to-September period was SAR2.3bn.
Meanwhile, 18 insurers saw their profits fall by an average of 40% to a combined SAR0.5bn. While Arabian Shield, LIVA, and UCA posted notable profit gains, several others faced significant declines.
Insurance revenue
Total insurance revenue of the 25 listed insurers grew by 16% to SAR48bn in the first three quarters (Q3) of this year from SAR42bn in the corresponding period in 2023. Without the Top Three insurers, the industry's growth was 9%.
Insurance service results
Overall underwriting performance improved slightly, with insurance service results increasing by 3% from SAR2.6bn in the first three quarters of 2023 to SAR2.7bn in the first nine months of 2024.
Among the 25 insurers, 17 companies reported a significant drop in insurance service results compared to the prior year.
Excluding the Top Three companies, the industry posted an underwriting profit of SAR720m, down from SAR1.0bn in Q3 2023, marking a 28% decline.
Investment income of the 25 insurers rose by 52%, climbing from SAR1.7bn in Q3 2023 to SAR2.5bn in Q3 2024, often balancing weaker underwriting outcomes.
Badri says that the financial results likely indicate the impact of heightened price competition, especially in the Motor third-party liability and medical SME segments.