While total net profit across 76 listed GCC insurers held steady at $1.2bn in 1H2025, the overall performance was weighed down by Saudi insurers, who saw profits decline by 40.3%, with only six out of 25 recording higher earnings, according to a report by research and consulting firm Insurance Monitor and Lux Actuaries and Consultants.
Insurance Monitor in its latest “Performance Periodical”, analysing listed insurers’ performance the first half of this year, said that the downturn in Saudi Arabia (KSA) was driven by a sharp deterioration in motor underwriting performance where the Net Combined Ratio (NCR) surged to 106% from 91% in 1H 2024, coupled with lower investment returns amid equity market volatility.
In contrast, both the UAE and Oman rebounded with solid underwriting performance, following rate recalibrations in 2H2024 and a relatively benign claims environment in 1H2025. This translated into a reduction of 3.4 and 15.4 percentage points in NCRs, respectively. Of the 33 insurers across these two markets, only seven reported lower profits pointing to a broad-based underwriting recovery.
Excluding KSA, investment returns were generally healthy, averaging 2.9% over the first six months. However, this figure may be overstated, as some insurers do not separately disclose investment income derived from policyholder-linked investment contracts.
The report said, despite challenges in certain markets, top-line growth continued across the region, averaging 8.1%, with a significant majority of the 76 listed insurers covered in the analysis recording higher revenues in 1H2025.
Growth has been driven by premium rate adjustments, mandatory insurance covers, overall economic expansion, and regional diversification led by the larger players, notably:
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Qatar’s Doha Insurance (DOHI) received regulatory approval in April to open a reinsurance branch in India and recently, Abu Dhabi National Insurance Company’s (ADNIC) board approved a similar move, not long after its acquisition of Mutakamela in April 2024.
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Meanwhile, UAE’s Orient Insurance is also exploring entry into Kuwait, after securing a licence to operate in Saudi Arabia in December 2024. Following closely behind is Qatar Insurance (QATI), whose board recently approved a plan to establish a branch in KSA to widen its regional footprint. QATI now generates 43% of its GWP (mainly medical business) from its operations in the UAE, Kuwait and Oman compared to just 12% three years ago. KSA’s Walaa also acquired a majority stake in a DIFC-based MGA, Aspire, to diversify its inward reinsurance business.
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Kuwait, on the other hand, recorded a notable decline in revenue this year, particularly in the health segment which was likely dented by the regulator’s termination of the Afya contract in September 2024. The Afya scheme accounted for ~50% of GIG’s domestic business and ~20% of its consolidated revenue, according to S&P.
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SELECT PERFORMANCE INDICATORS – 1H2025
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GCC
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UAE
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KSA
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OMR
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BAH
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KWT
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QAR
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Total
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Insurance Revenue
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2025 $m
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5,565
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9,094
|
900
|
294
|
1,582
|
2,078
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19,468
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2024 $m
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4,622
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8,422
|
807
|
255
|
1,873
|
2,029
|
18,007
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Change %
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20.4
|
7.5
|
11.6
|
14.9
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-15.5
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2.4
|
8.1
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Net Combined Ratio
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|
2025 %
|
92.1
|
98.2
|
99.0
|
99.3
|
96.1
|
94.8
|
96.6
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2024 %
|
95.5
|
95.3
|
114.3
|
94.3
|
95.6
|
92.5
|
95.7
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Change (ppt)
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-3.4
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2.9
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-15.4
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5.0
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0.5
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2.3
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0.9
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Investment income
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2025 $m
|
308
|
323
|
48
|
29
|
154
|
198
|
1,060
|
|
2024 $m
|
239
|
345
|
39
|
14
|
148
|
185
|
970
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Change %
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28.9
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-6.4
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22.8
|
99.5
|
4.5
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6.9
|
9.3
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Net Profit After Tax
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2025 $m
|
425
|
343
|
43
|
26
|
130
|
230
|
1,197
|
|
2024 $m
|
276
|
574
|
-30
|
18
|
132
|
216
|
1,188
|
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Change %
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53.8
|
-40.3
|
-
|
41.1
|
-1.2
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6.3
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0.8
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Source: Insurance Monitor’s Performance Periodical
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