Prime Highlights
- Saudi insurers’ aggregate net profit rose 13 percent to SR1.5 billion in H1 2026, driven by stronger underwriting and a 17 percent jump in investment income.
- Mid-sized and smaller insurers led the recovery, narrowing losses, while the top five firms held broadly stable combined earnings.
Key Facts
- Insurance revenue across 24 listed insurers rose 14 percent to nearly SR38.5 billion.
- Walaa Cooperative Insurance posted the sector’s sharpest turnaround, swinging to a SR43 million profit.
Background-
Saudi Arabia’s listed insurers posted a 13 percent rise in aggregate net profit in the first half of 2026, as stronger underwriting and investment returns lifted the sector’s performance.
Net profit attributable to shareholders climbed to about SR1.5 billion (400 million dollars) from SR1.3 billion a year earlier, Moody’s Ratings said in a report. Insurance revenue across 24 listed companies grew about 14 percent to nearly SR38.5 billion, driven mainly by continued growth in motor and medical insurance.
Moody’s said the gain came from improvement in both underwriting performance and investment income, which surged around 17 percent. The recovery was led mostly by mid-sized and smaller insurers that made notable gains, while the five largest insurers held broadly stable combined earnings of around SR1.6 billion.
Twelve of the 24 listed insurers posted higher net profit than a year earlier. Medgulf showed the strongest improvement among the top five, while several other large insurers also recorded steady earnings gains. Walaa Cooperative Insurance posted the sector’s biggest turnaround, moving to a profit of around SR43 million from a loss the previous year.
Aggregate sector equity rose 7.4 percent to around SR28 billion, supported largely by retained earnings and capital strengthening among bigger insurers. Moody’s noted the sector is preparing for a new risk-based capital framework starting January 2027, a shift expected to encourage further consolidation and stronger long-term stability across the market.
