Earnings of Most GCC-Listed Insurers Grow in H1

The earnings of 76 GCC-listed insurers held steady at $1.2 billion in the first six months of this year despite a sharp profit decline in Saudi Arabia driven by motor losses with Net Combined Ratios reaching 106% from 91% last year coup-led with lower investment income.

While only 6 of the 25 Saudi insurers saw higher earnings, the UAE and Oman posted strong broad-based rebounds, driven by improved underwriting and recalibrated pricing, according to a report by research and consulting firm Insurance Monitor and Lux Actuaries and Consultants.

Investment returns were generally healthy averaging around 2.9% over six months (excluding Saudi Arabia) and top-line growth averaged 10.9% (excluding Kuwait), led by the UAE at 20.4%, the report said.

In contrast, both the UAE and Oman rebounded with solid underwriting performance, following rate recalibrations in H2 2024 and a relatively benign claims environment in H1 2025. This translated into a reduction of 3.4 and 15.4 percentage points in NCRs, respectively. Of the 33 insurers across these two markets, only seven have reported lower profits pointing to a broad-based underwriting recovery.

Excluding Saudi Arabia, investment returns were generally healthy averaging 2.9% over six months. However, this figure may be overstated, as some insurers do not separately disclose investment income derived from policyholder-linked investment contracts.

The growth has been driven by premium rate adjustments, mandatory insurance covers, overall economic expansion, and regional diversification led by the larger players, notably: Qatar’s DOHI received regulatory approval in April to open a reinsurance branch in India and recently, ADNIC’s board approved a similar move, not long after its acquisition of MUTAKAMELA in April 2024.

Meanwhile, UAE’s ORIENT is also exploring entry into Kuwait, after securing a license to operate in Saudi Arabia in December 2024.

Following closely behind is Qatar’s QATI, whose board recently approved a plan to establish a branch in KSA to widen its regional footprint. QATI now generates 43% of its GWP (mainly medical business) from its operations in UAE, Kuwait and Oman compared to just 12% three years ago. KSA’s WALAA also acquired a majority stake in a DIFC-based MGA, Aspire, to diversify its inward reinsurance business.

Kuwait’s Revenue Declines

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.

The Afya scheme accounted for around 50% of GIG’s domestic business and around 20% of its consolidated revenue, according to S&P, who recently raised the insurer’s rating to A+ following a similar action on its Canadian parent, Fairfax Financial Holdings Ltd in June 2025.

The UAE-based AKIC forfeited lost its insurance license last month after failing to meet critical licensing requirements during the suspension period. Around the same time, a foreign insurer in the UAE saw its motor business suspended due to non-compliance with solvency and guarantee regulations.

In Saudi Arabia, ACIG, whose paid-up capital is $77.55 million, received a second notice from Saudi’s Insurance Authority last month, prompting a corrective plan within 10 days to meet the $79.95 million minimum capital requirement after shareholders rejected a $55.70 million rights issue in June, the Board has now proposed raising $2.4 million from other sources, the report added.