Saudi Arabia: Motor is still in recovery with medical leading the charge in 1Q
Source: Middle East Insurance Review | Jul 2026
The first three months of this year represented an encouraging but narrowly concentrated step forward for the Saudi insurance industry, with a few standout exceptions, according to international actuarial and risk solutions company BADRI Management Consultancy.
In its “KSA Listed Insurance Industry Performance Analysis – 1Q2026” report released yesterday, BADRI says that the early signs of pricing corrections that started in early 2025 are beginning to flow through — most visibly in motor. The pricing improvements should lead to better results for the remainder of the year, provided inflationary impacts remain under control, says the report.
The KSA insurance industry’s profitability (after zakat & tax) rose 27%, from SAR636m ($169.6m) in 1Q2025 to SAR809m in 1Q2026. Gross Written Premiums rose 12.4% to SAR26.9bn. Insurance revenue grew 13.8% to SAR18.8bn, with double-digit growth across most major insurers.
Overall underwriting improved, with the net insurance service result rising 31% from SAR620m to SAR814m. Investment income grew 7% to SAR686m from SAR643m in 1Q2025, supporting — rather than merely cushioning — the underlying underwriting improvement.
For the recovery to deepen through 2026, pricing discipline in motor and SME medical is essential, says BADRI.
Medical delivered a standout performance, with net insurance service result surging by 46% from SAR533m to SAR780m. Motor remained in the red, with net insurance service result improving from SAR-163m to SAR-105m and the combined ratio edging from 104.5% to 102.0%. Motor GWP grew by 26.6%, from SAR3.8bn in 1Q2025 to SAR4.9bn in 1Q2026, primarily on the back of better rates. P&C net insurance service result fell 49% to SAR76m, and life declined 39% to SAR63m. M