The insurance market in Saudi Arabia has demonstrated a robust expansion of 14.6 percent by the end of the third quarter of 2023, compared to the same period in the previous year.
A recent report issued by the Kingdom’s Insurance Authority delves into the sector’s performance and its impact on the nation’s gross domestic product (GDP).
With the Authority’s commitment to transparency, this report offers a detailed look into the insurance industry’s achievements. Notably, the gross written premiums (GWP) saw a significant increase to SR14.9 billion (approximately $4 billion) in the third quarter of 2023, a leap from SR13 billion ($3.5 billion) in the same quarter of the previous year.
The substantial growth is attributed to the motor, health, and property insurance segments. Additionally, the overall Loss Ratio saw a slight improvement, decreasing from 81.6 percent to 80.7 percent year over year.
The financial health of the sector is further underscored by the impressive growth in income from insurance operations. Net Profit after Zakat and Tax more than doubled, reaching SR869.6 million in the third quarter of 2023, up from SR370.6 million in the corresponding quarter of 2022.
Moreover, the Insurance Service Result surged to SR693.2 million from SR255 million, and Net Investment Income also rose to SR543.9 million from SR314 million in the year-over-year comparison.
These figures highlight the Saudi insurance sector’s contribution to economic diversification and its increasing role in the broader financial landscape of the Kingdom.