The financial performance of Saudi Arabia's insurance market in the first three quarters of this year (3Q2025) continued to reflect the challenging dynamics observed earlier in the year, with profitability pressures persisting across most insurers, according to the international actuarial and risk consulting firm, Badri Management Consultancy.
In a report titled “KSA Listed Insurance Industry Performance Analysis – Q3 2025”, released yesterday, Badri cautioned, “Despite moderate top-line growth, weak underwriting performance and declining investment income weighed heavily on overall results. Without meaningful corrective action on pricing—particularly in medical and motor segments, the industry remains on course for another difficult year.”
Profits
Profits (after zakat & tax) dropped sharply by 41% year-on-year, to SAR1.7bn ($453.3m) in 3Q2025, from SAR3.0bn in 3Q2024, according to interim financial statements filed by the insurers.
Performance divergence remained wide: while the top five insurers saw only a marginal 2.4% profit decline (to SAR2.3bn in 3Q2025 from SAR2.4bn in 3Q2024), the remaining companies recorded a steep 209% deterioration, swinging to a collective loss of SAR612m from a combined profit of SAR559m.
Only six companies increased profits in 3Q2025 compared to the corresponding period in 2024. The remaining reported a decrease in profits. Furthermore, 10 insurers reported net losses during the first nine months of this year, compared to only two in the corresponding period in 2024.
Insurance revenue
Insurance revenue for the listed companies grew by 7% to SAR51.7bn, supported by a 9% increase among the top five insurers. However, this growth failed to translate into stronger underwriting results. The Insurance Service Result fell by 37% from SAR2.7bn in 3Q2024 to SAR1.7bn in 3Q2025. While leading players such as Tawuniya achieved incremental growth, a majority of insurers saw significant declines, underscoring the persistent strain from underpriced portfolios and rising claims costs.
Investment income
Investment income added to the pressure, contracting by 7% to SAR2.0bn. Although BUPA reported the highest investment income (SAR558m), and Tawuniya achieved the largest absolute growth (SAR61m), the gains were insufficient to offset the industry’s weaker underwriting performance.
Excluding the top three insurers, the industry swung to a loss of SAR480m in 3Q2025, compared to a profit of SAR713m in 3Q2024—a deterioration of 167%. Given historical patterns, such widespread losses are likely to prompt pricing adjustments in the coming months.
"Without a firm shift toward technical discipline and sustainable pricing, the sector’s recovery prospects remain limited heading into the final quarter of 2025," said the report.