With few bright spots, 1H2025 has reinforced the challenges already visible in the first quarter. The impact of prolonged intense price competition in medical and certain motor segments continues to weigh heavily on results, said Badri Management Consultancy, an international actuarial and risk consulting firm.
“Without decisive price corrections, 2025 is shaping up to be another difficult year of losses for many insurers,” cautioned Badri in its report titled “KSA: Listed Insurance Industry Performance Analysis – 1H2025”, released yesterday. The report is based on preliminary interim financial disclosures.
Profitability
The Saudi insurance industry’s profitability (after zakat & tax) plunged by 40% to SAR1.3bn ($346m) in the first half of 2025, from SAR2.1bn ($560m) in 1H2024. Performance remained mixed. Among the top three insurers, Tawuniya grew profits by 11%, BUPA saw a 13% decline, and Al Rajhi's net profit was flat at 1%, together contributing the bulk of industry profits. Meanwhile, 18 companies reported a profit drop with an average fall of -81%. Malath, GIG, Mutakamela, and Enaya posted notable gains, but these were exceptions in a broadly weak market.
Total insurance revenue for the 25 listed companies analysed grew by 7% to SAR34bn in 1H2025 from SAR32bn in 1H2024. However, overall underwriting performance deteriorated sharply. Insurance service results fell by 37% to SAR1.2bn in 1H2025 from SAR2.0bn in 1H2024, with 18 companies reporting significant declines. Investment income also contracted by 11% to SAR1.3bn in 1H2025 from SAR1.4bn in the corresponding half of 2024, amplifying the decline in underwriting results.
Excluding the top three insurers, the industry swung to a loss of SAR312m in 1H2025, compared with a profit of SAR522m in 1H 2024—a 160% drop. “Based on recent history in this market, such results often lead to price increases,” said Badri.
The report added, “With the exception of Tawuniya, most major medical underwriters continued to post technical losses or steep profit declines, reflecting sustained underpricing in both medical and certain motor segments. The absence of sustained focus on technical profitability, coupled with unprofitable pricing, has left the market exposed to ongoing earnings pressure. The full-year picture will depend heavily on whether corrective pricing action is taken in the coming months.”
To download the report, please click on this link.