The 1H2026 performance of Saudi Arabia's listed insurance sector confirms that the market is steadily working its way out of the difficult conditions that defined 2025, said BADRI Management Consulting, an international actuarial and risk consulting company.
In its report, titled “KSA Listed Insurance Industry Performance Analysis – H1 2026”, BADRI said that the corrective pricing actions taken in the last few quarters are now paying dividends, especially in Motor. “The downward price spiral that began in September 2023 and ran through 2024 was arrested in early 2025, and rates have climbed consistently since. Those higher average premiums are now feeding into earned revenue, and investment income has added a further layer of support. The result is an industry that looks healthier than it did 12 months ago, even if the improvement is not yet broadly shared.”
Gross Written Premium increased by 18.3% year on year to SAR49.9bn ($13.2bn) in 1H2026, and insurance revenue grew by 14.1% to SAR38.5bn, with double-digit top-line growth across most of the larger insurers. GWP growth was more broad-based, with the GWP of the Top Five companies increasing by 18%, as compared to a 20% increase in the top line of the rest of the companies. The Top Five insurers in terms of GWP were Tawuniya, Bupa, Al-Rajhi, Medgulf and Arabian Shield.
Underwriting results
The underwriting results improved in absolute terms but the margins did not materially expand. The net insurance service result rose by 12.1%, from SAR1.23bn to SAR1.38bn while the net insurance service result ratio was maintained at 4%.
The Top Five insurers—Tawuniya, Bupa, Al-Rajhi, GIG and Medgulf—saw their collective insurance service result decrease by 4%, from SAR1.66bn to SAR1.60bn, while the rest of the market improved by roughly half, bringing their losses down from SAR430m to SAR218m. 12 of the 24 companies still recorded a negative result, confirming that the turnaround remains narrowly based.
Medical continued to drive the sector with 19% growth in GWP and a modest 8% increase in Net Service Results. Motor delivered the clearest improvement with a 31% increase in GWP and a 65% improvement in Net Service Results, reducing losses from SAR425m to SAR148m. P&C topline improved by 16%, but the Net Service Results dropped by 27% due to a large claim reported by Tawuniya. P&S line lagged, with a 7% decline in GWP and a 68% drop in Net Service Results.
Investment income grew 23% to SAR1.53bn, supporting rather than merely cushioning the underlying underwriting improvement. Even so, underwriting remains the real differentiator between the companies pulling ahead and those still struggling.
Profits
Industry profitability after zakat rose by 19.5%, from SAR1.28bn in 1H2025 to SAR1.53bn in 1H2026. The Top Three insurers, which were Bupa, Tawuniya and Al-Rajhi, accounted for the bulk of sector earnings with a combined SAR1.51bn, although this was slightly below the SAR1.60bn, they earned a year ago. The rest of the market, other than the Top Three, improved from a loss of SAR315m to a modest profit of SAR20m. Nine companies reported a net loss for the half, similar in 1H2025.
Headwinds
Overall, 1H2026 points to a market moving in the right direction, particularly against the weak run through 2025. The pricing corrections in Motor are beginning to deliver measurable results, Medical continues to carry industry earnings, and underwriting is stabilising. But the sector still leans heavily on a handful of large insurers, and many mid-sized players are only starting to recover.
The tailwinds are real, yet two headwinds are worth watching: the pressure on repair costs in the current environment, and the familiar temptation for Motor insurers to offer discounts towards the end of the year. Sustained pricing discipline, particularly in Motor and SME Medical, together with stronger underwriting execution, will be essential if this recovery is to broaden into a more durable and balanced improvement through the second half of 2026.
To download the report, please click on this link.