Insurance companies listed in the Gulf Cooperation Council (GCC) maintained stable earnings of $1.2 billion (Dh4.4 billion) in the first half of 2025, despite a significant profit drop in Saudi Arabia, largely due to motor losses and reduced investment income.
The GCC Performance Periodical by Insurance Monitor and Lux Actuaries and Consultants reveals that Saudi insurers experienced a 40.3% profit decrease, with only six out of 25 reporting increased earnings.
The decline in Saudi Arabia was attributed to a marked deterioration in motor underwriting results, as the net combined ratio (NCR) increased to 106% in H1 2025 from 91% in H1 2024, along with lower investment returns caused by equity market fluctuations.
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Conversely, both the UAE and Oman showed a strong recovery in underwriting performance, following rate adjustments in H2 2024 and a mild claims environment in H1 2025, resulting in 3.4 and 15.4 percentage point reductions in NCRs, respectively.
Among the 33 insurers in these markets, only seven reported lower profits, indicating a broad underwriting recovery.
Excluding Saudi Arabia, investment returns were generally robust, averaging 2.9% over six months, according to the report.
“This figure might be overstated, as some insurers do not separately report investment income from policyholder-linked contracts. Despite challenges in specific markets, overall growth in the region persisted, with an average increase of 8.1% and 76 listed insurers reporting higher revenues in H1 2025,” the quarterly report by Insurance Monitor and Lux Actuaries and Consultants noted.
It further explained that growth was driven by premium rate adjustments, mandatory insurance, economic expansion, and regional diversification led by major players.
In contrast, Kuwait saw a significant revenue drop this year, especially in the health sector, likely due to the regulator’s termination of the Afya contract in September 2024.
