The Saudi Arabian insurance industry’s profits (after-zakat & tax) dropped by 28% in the first three months of 2025 to SAR0.6bn ($160m) in 1Q2025 from SAR0.9bn in 1Q2024, Badri Management Consultancy, an international actuarial consulting company, has said.
In its report “KSA: Listed Insurance Industry Performance Analysis –1Q2025”, Badri said that motor results went from SAR0.3bn profit in 1Q2024 to a loss of (SAR0.2bn) in 1Q2025. This was the biggest contributor to the drop in overall profits, says Badri.
The impact of intense price competition in motor is now coming through with a COR of 104%. Without sharp price corrections, 2025 will be a very difficult year of losses for many, Badri says.
Whilst Medical seems to be showing some small signs of recovery, the Motor market is a car crash right now, says Badri. All motor writers made technical losses or suffered sharp drops in profits during 1Q2025. There has been a lack of focus on technical results from some companies, with market premiums at unprofitable levels for too long in certain motor segments and an industrywide Motor COR of 104% is the result.
Whilst the Top Three motor insurers reduced production with a GWP dip, a few mid-sized companies more than doubled their motor books in this environment. More than, say, 20% growth in Motor in this environment should be a red flag for the board and the management.
Top Three
For the Top Three insurers—BUPA, Tawuniya and Al Rajhi—the combined profit was SAR732m for 1Q2025 (1Q2024: SAR667m). BUPA and Tawuniya increased profits by 6% and 33% whereas Al Rajhi’s profits declined by 18%, impacted by the challenging motor market.
The remaining insurers recorded a combined loss of SAR96m, down from profits of SAR219m in 1Q2024, reflecting a 144% drop. Based on recent history in this market, with results such as these, price rises often follow.
Total insurance revenue grew by 6%, increasing from SAR16bn to SAR17bn. Without the Top Three, the industry’s growth was 5%. M