Insurers listed in the Gulf Cooperation Council (GCC) countries reported stable earnings of $1.2 billion (Dh4.4 billion) in the first half of 2025. This stability persisted despite a significant profit decline in Saudi Arabia, largely due to motor losses and reduced investment income.
According to the GCC Performance Periodical by Insurance Monitor and Lux Actuaries and Consultants, Saudi insurers experienced a 40.3 percent drop in profits, with only six out of 25 witnessing increased earnings.
The downturn in Saudi Arabia was attributed to a sharp deterioration in motor underwriting performance, where the net combined ratio (NCR) rose to 106 percent during H1 2025 from 91 percent in H1 2024, alongside lower investment returns amidst equity market volatility.
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In contrast, data indicated that both the UAE and Oman experienced a rebound with strong underwriting performance, following rate recalibrations in H2 2024 and a relatively benign claims environment in H1 2025. This resulted in a reduction of 3.4 and 15.4 percentage points in NCRs, respectively.
Of the 33 insurers in these two markets, only seven reported lower profits, highlighting a broad-based underwriting recovery.
Excluding Saudi Arabia, investment returns were generally healthy, averaging 2.9 percent over six months.
“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 percent, 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.
