GCC Insurers Post Stable Earnings In H1 2025 As Saudi Firms See Sharp Profit Decline

Listed insurers in the Gulf Cooperation Council (GCC) countries reported stable earnings of $1.2 billion (Dh4.4 billion) in the first half of 2025, despite a sharp decline in profit in Saudi Arabia that was mostly driven by motor losses and lower investment income.

According to the GCC Performance Periodical by Insurance Monitor and Lux Actuaries and Consultants, Saudi insurers saw their profits decline by 40.3 per cent, with only six out of 25 recording higher earnings.

The downturn in Saudi Arabia was driven by a sharp deterioration in motor underwriting performance, where the net combined ratio (NCR) surged to 106 per cent during H1 2025 from 91 per cent in H1 2024, coupled with lower investment returns amid equity market volatility.

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In contrast, data showed both the UAE and Oman rebounded with solid underwriting performance, following rate recalibrations in H2 2024 and a relatively benign claims environment in H1 2025. 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 have reported lower profits, pointing to a broad-based underwriting recovery.

Excluding Saudi Arabia, investment returns were generally healthy, averaging 2.9 per cent over six months, it said.

“This figure may be overstated, as some insurers do not separately disclose investment income derived from policyholder-linked investment contracts. Despite challenges in certain markets, top-line growth continued across the region, averaging 8.1 per cent with a significant majority of 76 listed insurers recording higher revenues in H1 2025,” according to the quarterly report by Insurance Monitor and Lux Actuaries and Consultants.

It elaborated that growth has been driven by premium rate adjustments, mandatory insurance covers, overall economic expansion, and regional diversification led by the larger players.

Kuwait, on the other hand, recorded a notable decline in revenue this year, particularly in the health segment, likely impacted by the regulator's termination of the Afya contract in September 2024.

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