Moody’s expects financial solvency pressures to increase as Saudi Arabia’s insurance sector transitions, starting in January 2027, to a risk-based capital and economic solvency framework.
The agency also noted that these developments are likely to reinforce mergers and consolidation as one of the key trends in the Saudi insurance market over the medium term.
According to Moody’s data, the Saudi insurance sector’s performance improved during the first half of 2026, with net profit attributable to shareholders rising by 13% to SAR 1.5 billion, compared to around SAR 1.3 billion in H1 2025, supported by improved underwriting results and higher investment income.
Insurance revenue at the 24 listed companies increased by 14% to around SAR 38.5 billion, driven by continued growth in motor and medical insurance businesses. Underwriting results also improved, supported by premium growth, an improved claims experience, stricter underwriting policies, and more favorable pricing conditions, particularly in the motor insurance segment, it added.
Moody’s also pointed out that the improvement in profitability varied across companies. Twelve of the 24 companies reported higher net profit year-on-year, while nine companies continued to log net losses. Mid-sized and smaller companies were the main drivers of the improvement, as several companies succeeded in reducing their losses or returning to profitability.
Meanwhile, the five largest insurance companies maintained stable aggregate profits of approximately SAR 1.6 billion in H1 2026, with little change from the same period a year earlier. The other 19 companies reduced their combined net losses to around SAR 100 million, compared with SAR 300 million a year earlier.
The agency added that the insurance sector remains highly concentrated. The five largest companies by insurance revenue— Tawuniya, Bupa Arabia, Al Rajhi Takaful, MedGulf, and Wataniya—accounted for approximately 77% of total sector revenue as of the end of June 2026, while Tawuniya and Bupa Arabia alone accounted for around 59%.
Moody’s expects financial solvency pressures to increase as Saudi Arabia’s insurance sector transitions, starting in January 2027, to a risk-based capital and economic solvency framework.
The agency also noted that these developments are likely to reinforce mergers and consolidation as one of the key trends in the Saudi insurance market over the medium term.
According to Moody’s data, the Saudi insurance sector’s performance improved during the first half of 2026, with net profit attributable to shareholders rising by 13% to SAR 1.5 billion, compared to around SAR 1.3 billion in H1 2025, supported by improved underwriting results and higher investment income.
Insurance revenue at the 24 listed companies increased by 14% to around SAR 38.5 billion, driven by continued growth in motor and medical insurance businesses. Underwriting results also improved, supported by premium growth, an improved claims experience, stricter underwriting policies, and more favorable pricing conditions, particularly in the motor insurance segment, it added.
Moody’s also pointed out that the improvement in profitability varied across companies. Twelve of the 24 companies reported higher net profit year-on-year, while nine companies continued to log net losses. Mid-sized and smaller companies were the main drivers of the improvement, as several companies succeeded in reducing their losses or returning to profitability.
Meanwhile, the five largest insurance companies maintained stable aggregate profits of approximately SAR 1.6 billion in H1 2026, with little change from the same period a year earlier. The other 19 companies reduced their combined net losses to around SAR 100 million, compared with SAR 300 million a year earlier.
The agency added that the insurance sector remains highly concentrated. The five largest companies by insurance revenue— Tawuniya, Bupa Arabia, Al Rajhi Takaful, MedGulf, and Wataniya—accounted for approximately 77% of total sector revenue as of the end of June 2026, while Tawuniya and Bupa Arabia alone accounted for around 59%.
