RIYADH: Saudi Arabia’s insurance sector delivered mixed earnings performance in 2025, with profits rising at Gulf Insurance Group and The Co. for Cooperative Insurance, known as Tawuniya and Takaful Al-Rajhi, while Saudi Reinsurance Co. reported a sharp decline.
According to filings on the Saudi Exchange, Gulf Insurance Group posted net profit attributable to shareholders of SR126.2 million ($33 million) for 2025, up 28.51 percent from the previous year.
This increase is primarily linked to improved net insurance results, which rose by 13 percent, driven by a better net combined ratio in the health segment and higher surplus from the insurance pool. The growth was also supported by a 4 percent rise in investment income, mainly due to higher unrealized gains from mark-to-market adjustments.
Another bourse filing revealed that Tawuniya’s net profits stood at SR1.1 billion in 2025, up 7.93 percent year on year.
Al-Rajhi Co. for Cooperative Insurance, or Takaful Al-Rajhi, posted one of the strongest performances among listed insurers, with net profit climbing 36.9 percent annually to SR454 million, a Tadawul statement showed.
As for Saudi Reinsurance Co., a Tadawul statement showed that the firm’s net profits amounted to SR140 million in 2025, reflecting a 70.5 percent drop compared to 2024 figures.
The decline was primarily due to exceptional capital gains recorded in the previous year from the sale of its stake in Probitas Holdings, amounting to SR365.9 million.
Sector outlook remains broadly stable despite earnings divergence. Moody’s Ratings said in November that the Gulf Cooperation Council insurance industry is expected to maintain stable conditions over the next 12 to 18 months, supported by solid economic growth and rising non-oil investment.
In its latest GCC Insurance Outlook, Moody’s said economic diversification initiatives and the expansion of compulsory insurance schemes are likely to underpin premium growth across the region.
The non-life segment — accounting for more than 80 percent of total premium revenue — is expected to benefit from government-backed infrastructure and diversification projects, particularly in Saudi Arabia and the UAE, which together generate roughly 80 percent of GCC insurance premiums.
Regulators across the GCC are also tightening capital and risk requirements, a shift Moody’s expects will accelerate consolidation in the sector, especially in Saudi Arabia, where authorities have adopted a more assertive compliance stance.
