Milliman’s year-end 2025 insurance industry report for the Kingdom of Saudi Arabia (KSA) presents a comprehensive market overview, including developments and regulatory updates for the country. The report covers trends in metrics such as insurance revenue, gross written premium, net profit, net profit ratio, shareholders equity, and return on shareholder’s equity. The data is based on the audited disclosures of 24 KSA insurance companies listed on the Saudi Stock Exchange (Tadawul). We closely examine the sectors of medical, motor, property and casualty, and protection and savings.
Key takeaways:
- The Saudi insurance sector maintained its upward trajectory in 2025, with total insurance revenue growing by 10.2% to reach Saudi riyal (SAR) 71.2 billion.
- The sector remains highly concentrated, with dominant players Tawuniya, Bupa Arabia, and Al Rajhi Takaful accounting for the majority of industry revenue.
- Despite the growth in topline revenue, the industry faced a significant compression in profitability.
- Net income (post-tax) decreased by 40.8% during 2025, falling to SAR 2.2 billion, down from SAR 3.7 billion in 2024.
- While leaders such as Al Rajhi and Tawuniya observed performance improvements, the broader market decline was driven by notable downturns in companies such as Aletihad, Walaa, and Gulf General.
- Insurance service margin fell to 2.9%, from 4.5%, as the insurance service result declined by SAR 833 million, despite higher revenue.
- Net profit ratio contracted to 3.1%, from 5.7%, with net income post-zakat (Islamic religious obligatory charitable contribution) and tax down SAR 1,497 million.
- Loss ratio increased to 89.3%, from 86.7%, due to an increase in insurance service expenses of SAR 7,547 million, outpacing revenue growth of SAR 6,567 million.
- Return on equity (ROE) declined to 7.8%, from 14.8%, due to a decrease in net income of SAR 1,497 million, while the weighted average equity increased by SAR 2,591 million, producing a two-sided drag on ROE.