The first three months of this year represent 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 said that the early signs of pricing corrections that started in early 2025 are beginning to flow through — most visibly in Motor.
The Motor service results in 1Q2026 were SAR-0.11bn (-US$29.3m), which narrowed from SAR-0.27bn in 4Q2025, which was already better than 3Q2025's SAR-0.31bn, which was the worst quarter in the past few years for Motor.
The pricing improvements should lead to better results for the remainder of the year, provided inflationary impacts remain under control.
The KSA insurance industry's profitability (after zakat & tax) rose 27%, from SAR636m in 1Q2025 to SAR80m in 1Q2026. The Top Three insurers — Bupa, Tawuniya, and Al-Rajhi — generated SAR789m in net profit, accounting for the vast majority of the sector‘s earnings. Bupa led at SAR387m, Tawuniya grew 10% to SAR289m, and Al-Rajhi recovered to SAR113m. A total of nine companies reported net losses, up from eight in 1Q2025.
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. However, 11 out of 24 companies still recorded a negative net insurance service result — confirming the recovery is narrowly based.
Medical delivered the standout result, with net insurance service result surging 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.
Investment income grew 7% to SAR686m from SAR643m in 1Q2025, supporting — rather than merely cushioning — the underlying underwriting improvement.
Recovery
Excluding the Top Three, the rest of the market moved from an after-zakat loss of SAR97m to a combined profit of SAR19m — directionally encouraging, but extremely thin.
For the recovery to deepen through 2026, pricing discipline in Motor and SME Medical is essential. The profit base remains dangerously concentrated in the top three, and another repricing misstep could reverse these gains quickly.