The Saudi insurance market saw mixed financial results in the motor and medical lines in 2024, according to an analysis by Badri Management Consulting, an international actuarial and risk consultancy firm. These two branches are the main pillars of the Saudi insurance sector, contributing a combined 84% of total insurance revenue in 2024.
In its report 'KSA – Listed Insurance Industry Performance Analysis – Year 2024', Badri said, that motor GWP declined by 2% year on year to SAR13.8bn [$3.68bn](2023: SAR14.2bn).
The report added, “The decline in motor GWP is concerning, as premium rates peaked in 2023 but have since trended downward, with companies lowering rates to compete for topline. However, the majority of motor writers are maintaining underwriting discipline with 56% of motor writers showing increased underwriting profit in 2024 of around SAR240m compared with 2023.”
Health insurance
Also of concern is the performance of the health insurance branch. Medical GWP grew by 9% y-o-y to SAR42bn (2023: SAR39bn). The medical insurance branch’s 9% topline growth was offset by a sharper rise in insurance service expenses, causing a 16% drop in net service results.
Badri said, “Fierce price competition in this branch, if unchecked, pointed to a bleak 4Q2024 outlook. Without pricing corrections, 2025 performance may also suffer. About 68% of KSA’s medical writers saw a combined 212% y-o-y decline in underwriting results, with losses totaling nearly SAR766m in 2024 compared to 2023."
The overall insurance market saw GWP jump by 15% to SAR73bn in 2024 from SAR64bn in 2023. The industry’s net profit (post zakat & tax) dipped 2% in 2024 to SAR3.2bn in 2024 from SAR3.3bn in 2023. Investment income contributed 97% of the net profit.
The report said, “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.”