Samer Choucair: Saudi Insurers Write SAR 84.3 Billion in Premiums in 2025 as Profitability Tests the Quality of Growth
Investment leader Samer Choucair said Saudi Arabia’s insurance sector has entered a new phase of quality-driven growth, with gross written premiums rising to approximately SAR 84.3 billion in 2025, an increase of 10.7%. The growth was driven primarily by continued expansion in health and motor insurance, reflecting a broader demand base for protection and risk-management products across the Saudi economy.
Choucair explained that premium growth does not automatically translate into improved profitability. Results from listed Saudi insurers showed that the insurance service result fell to approximately SAR 1.9 billion in 2025, down 31% from the previous year, while net profit declined to around SAR 2 billion, a decrease of 36%.
He said these figures underscore the importance of combining underwriting discipline, efficient claims management, and effective capital deployment.
Choucair added that investment income has become an increasingly important component of insurers’ business models. However, maximizing returns should not come at the expense of liquidity, asset quality, or insurers’ ability to meet policyholder obligations.
From an institutional-investor perspective, he said, the quality of investment portfolios, credit-risk management, and exposure to interest-rate movements must advance in parallel with improvements in insurance underwriting performance.
Risk-Based Capital Reshapes Capital Allocation
Choucair noted that regulatory transformation is another factor reshaping capital-allocation priorities. The Saudi Insurance Authority has announced that the Kingdom will transition to a Risk-Based Capital (RBC) framework beginning January 1, 2027, replacing the current solvency-measurement framework.
During 2026, insurers are conducting parallel calculations under the new system in preparation for full implementation.
Choucair emphasized that the new framework will make risk management more closely integrated with both investment and underwriting decisions. Insurers will need to align their capital levels with the nature and scale of the risks they assume.
This, he said, could improve capital-allocation efficiency and encourage insurers to develop more sophisticated pricing and portfolio-management models.
Growth Opportunities in Saudi Arabia’s Non-Oil Economy
Choucair believes the insurance sector offers an opportunity for investors seeking long-term exposure to the growth of Saudi Arabia’s non-oil economy, particularly as health and commercial insurance expand and the sector’s regulatory and digital infrastructure continues to develop.
However, he stressed that selecting insurance companies should be based on underwriting quality, risk-management capabilities, and balance-sheet strength, rather than premium growth alone.
He noted that rapid growth in written premiums can conceal deteriorating underwriting economics if pricing fails to reflect the underlying risks or if claims costs rise faster than premiums.
Profitability Will Define the Next Phase
Samer Choucair concluded that the next phase of Saudi Arabia’s insurance-market development will reward companies capable of balancing growth, profitability, and solvency.
Investment income can provide meaningful support to insurers’ results, he said, but it cannot compensate indefinitely for weak underwriting performance or poor risk pricing.
For institutional investors, the key question is therefore shifting from how fast premiums are growing to how efficiently insurers are converting that growth into sustainable earnings while maintaining adequate capital and managing risk.