Increase in Saudi sector profits by 24.3 per cent for approximately $500 million
Source: Asharq Al-Awsat
The story in brief
The Saudi insurance sector entered a new phase of growth, with improved insurance results, increased operational efficiency, quality of claims and risk management. The Saudi insurance sector entered a new phase of growth, driven by improved insurance results, higher operational efficiency and quality management of claims and risks, reflecting the profits of listed companies that jumped during the first half of 2026, by about 24.3 per cent, to 1.87 billion rials ($498.6 million) in an indicator of improved profitability for the sector.
Detailed summary
The Saudi insurance sector has entered a new phase of growth, with improved insurance results, increased operational efficiency, claims quality, and risk management. The Saudi insurance sector has entered a new phase of growth, driven by improved results of insurance services, increased operational efficiency, and the quality of claims and risk management, which was reflected in the profits of listed companies, which jumped during the first half of 2026, by about 24.3 percent, to 1.87 billion riyals ($498.6 million), in an indication of the sector’s improved ability to transform the growth of activity and premiums into more sustainable profitability. This performance comes at a time when the demand for insurance products in the Kingdom continues to grow, driven by the expansion of health and vehicle insurance, in addition to the growing needs of projects, infrastructure, and new economic activities. The increase in insurance and reinsurance revenues, along with investment returns and the performance of major companies, contributed to enhancing the overall results of the sector.
Reading the companies’ results reveals a clear discrepancy in performance. 17 companies achieved profits during the period, 11 of which recorded growth in their net profits, while 9 companies incurred losses. Bupa Arabia topped the list of the most profitable companies in the sector, with profits amounting to 694.08 million riyals, a growth of 4.14 percent, over the same period last year, during which it earned about 666.49 million riyals, supported by an increase in the net results of insurance services and the growth of operations, in addition to an increase in net investment results and other revenues. “Cooperative” came in second place after recording a net profit of 609.85 million riyals, despite a significant decrease in its profits by 16.36 percent, after its profits had exceeded 729.11 million riyals in the same half of 2025. The company attributed the decline in its profits to a decrease in net profits from insurance results, and an increase in insurance services expenses, as a result of recording large claims in the engineering and energy branches.
“Al Rajhi Takaful” also ranked third in the highest profitability among sector companies, with profits that reached 207.84 million riyals, with a slight growth of 2.7 percent, compared to its profits during the same period of the previous year of about 202.37 million riyals, driven by an increase in insurance revenues, in the activities of vehicle insurance, medical insurance, and general insurance, and an increase in net investment results and returns from the investment portfolio. At the level of the second quarter of the year, the profits of sector companies reached 923.43 million riyals, a growth of 24.87 percent, compared to their profits during the same quarter of 2025, during which they achieved profits amounting to 739.5 million riyals. 16 companies in the sector recorded net profits during the second quarter of 2026, and the profits of 11 of them increased compared to the same quarter of 2025, and the rest of the companies incurred quarterly losses. It is not a passing number
Background & context
This story sits within Saudi Arabia's broader reform agenda and efforts to grow Capital Markets as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.
Key numbers & facts
- The Saudi insurance sector entered a new phase of growth, driven by improved insurance results, higher operational efficiency and quality management of claims and risks, reflecting the profits of listed companies that jumped during the first half of 2026, by about 24.3 per cent, to 1.87 billion rials ($498.6 million) in an indicator of improved profitability for the sector.
- The Saudi insurance sector has entered a new phase of growth, driven by improved results of insurance services, increased operational efficiency, and the quality of claims and risk management, which was reflected in the profits of listed companies, which jumped during the first half of 2026, by about 24.3 percent, to 1.87 billion riyals ($498.6 million), in an indication of the sector’s improved ability to transform the growth of activity and premiums into more sustainable profitability.
- Bupa Arabia topped the list of the most profitable companies in the sector, with profits amounting to 694.08 million riyals, a growth of 4.14 percent, over the same period last year, during which it earned about 666.49 million riyals, supported by an increase in the net results of insurance services and the growth of operations, in addition to an increase in net investment results and other revenues.
- “Cooperative” came in second place after recording a net profit of 609.85 million riyals, despite a significant decrease in its profits by 16.36 percent, after its profits had exceeded 729.11 million riyals in the same half of 2025.
- “Al Rajhi Takaful” also ranked third in the highest profitability among sector companies, with profits that reached 207.84 million riyals, with a slight growth of 2.7 percent, compared to its profits during the same period of the previous year of about 202.37 million riyals, driven by an increase in insurance revenues, in the activities of vehicle insurance, medical insurance, and general insurance, and an increase in net investment results and returns from the investment portfolio.
Key points
- The Saudi insurance sector entered a new phase of growth, with improved insurance results, increased operational efficiency, quality of claims and risk management.
- The Saudi insurance sector entered a new phase of growth, driven by improved insurance results, higher operational efficiency and quality management of claims and risks, reflecting the profits of listed companies that jumped during the first half of 2026, by about 24.3 per cent, to 1.87 billion rials ($498.6 million) in an indicator of improved profitability for the sector.
- The Saudi insurance sector has entered a new phase of growth, with improved insurance results, increased operational efficiency, claims quality, and risk management.
- The Saudi insurance sector has entered a new phase of growth, driven by improved results of insurance services, increased operational efficiency, and the quality of claims and risk management, which was reflected in the profits of listed companies, which jumped during the first half of 2026, by about 24.3 percent, to 1.87 billion riyals ($498.6 million), in an indication of the sector’s improved ability to transform the growth of activity and premiums into more sustainable profitability.
Why this matters
This matters because activity in Capital Markets, Banking shapes capital flows, hiring and investor sentiment across Saudi Arabia.
Economic & market impact
Potential impact: - Listed GCC equities and indices may see direct trading reaction. - Banks may see shifts in mortgage, project finance and corporate lending pipelines.
GCC angle
For the rest of the GCC, this is a signal on the pace of activity in Capital Markets, Banking. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.
Risks & uncertainty
There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.
What happens next?
Watch for upcoming disclosures from listed names in Capital Markets, Banking, official macro releases for Saudi Arabia, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.
Sources used
This is an original Tharwa briefing based on the available source material. Read the full article from the publisher.
Tharwa Weekly
One weekly digest of the GCC economy, companies, markets and investment opportunities — clear and concise.