The preliminary results of the Saudi insurance market for the first half of this year suggest that the sector is gradually moving beyond the difficult conditions experienced throughout 2025, according to BADRI Management Consultancy, an international actuarial and risk management firm.
In a report titled “KSA Listed Insurance Industry Performance Analysis – 1H2026”, based on preliminary announcements of the interim results of listed insurers, BADRI said that improved motor pricing is showing the first tangible benefits of corrective actions taken over the past year.
BADRI elaborated, “The downward price spiral which started in September 2023 and continued throughout 2024 was arrested at the beginning of 2025. Since then, the rates have increased consistently and now we are seeing earnings from those increasing rates. This is also evident in higher insurance revenues."
Investment income has provided additional support, the report said.
Interim financial results
The KSA insurance industry's profitability (after zakat) increased by 13% to SAR1.5bn in 1H2026 from SAR1.3bn in 1H2025. Insurance revenue grew by 14% to SAR38.5bn, while insurance service results improved by 13% to SAR1.4bn, indicating that underwriting performance is beginning to recover alongside premium growth.
The Top Five companies collectively reported a 3% decline in insurance service results from SAR1.67bn to SAR1.62bn. These were Tawuniya, Bupa Arabia, Al Rajhi, GIG and Medgulf.
Encouragingly, the rest of the market recorded a 52% increase in insurance service results. The biggest turnaround was shown by Walaa, which went from a loss of SAR117m to a profit of SAR43m.
Investment income increased 23% to SAR1.5bn, providing meaningful support to earnings alongside the improvement in underwriting. Even so, underwriting remains the key differentiator.
Market concentration
Despite the improvement at the industry level, earnings remain heavily concentrated among the market leaders. The Top Five insurers generated SAR1.67bn of profit, broadly unchanged from 1H2025, while the remaining companies reduced their combined loss from SAR328m to SAR143m.
Nevertheless, nine out of 24 listed insurers still reported net losses, compared with eight in 1H2025, highlighting that the recovery has yet to translate into sustainable profitability across the sector.
Right direction
Overall, 1H2026 indicates that the market is moving in the right direction, particularly compared with the weak performance seen throughout 2025. The pricing corrections in Motor are beginning to deliver measurable results,
Medical continues to support industry earnings, and underwriting performance is stabilising. However, the sector remains highly dependent on a handful of large insurers, while many mid-sized players are only beginning to recover.
While there are quite a few tailwinds, the impact on repair costs due to the current situation and the temptation for motor insurers to offer discounts in the September season remain strong headwinds.
BADRI said, “Sustained pricing discipline, particularly in Motor and SME Medical, together with stronger underwriting execution will be essential if the current recovery is to broaden into a more durable and balanced market improvement during the second half of 2026.”
To download the report, please click on this link.