GCC Insurance Performance in FY2024: Key Insights and Emerging Trends

Despite macroeconomic and operational challenges — ranging from extreme weather events to the introduction of corporate tax in the UAE — the GCC insurance sector ended FY2024 on a profitable note. Listed insurers across the region posted a combined after-tax profit of USD 2.1 billion, underscoring the sector’s resilience in an evolving landscape.

In this blog, we draw on insights from the latest GCC Performance Periodical, jointly released by Insurance Monitor and Lux Actuaries & Consultants, to examine the financial and regulatory trends shaping the industry’s performance and outlook.

Profitability Holds — but Remains Uneven

Net profit across the region rose by an average of 3.3%, after adjusting for the QAR 1.6 billion loss reported by QGRI in FY2023. While headline figures reflect stability, the reality beneath the surface is more nuanced. Profit growth was largely driven by a few dominant players, while many mid- and small-sized insurers reported subdued or negative results.

Shrinking Margins Underscore Underwriting Pressures

Underwriting profitability declined in key markets. In Saudi Arabia, medical insurance margins contracted by approximately 3 percentage points, while insurers in the UAE and Oman faced significant weather-related claims. These pressures highlight the continued volatility of underwriting results and the challenges of pricing adequacy in increasingly complex risk environments.

Investment Returns Provide a Buffer

In contrast to underwriting performance, investment income was a source of strength. Supported by fixed-income allocations, the average return on investment across the region reached 5.0%. For many insurers, this income played a critical role in stabilizing bottom-line results — highlighting the importance of asset-side performance in offsetting underwriting volatility.

Revenue Growth Continues, Driven by Top-Tier Players

Total insurance revenue for the region rose by 12.3% to USD 37.5 billion in FY2024, with 65 out of 78 listed insurers reporting growth. As with profit, however, revenue gains were concentrated among larger insurers. While this growth trajectory reflects increasing insurance penetration and product uptake, it also raises questions about long-term sustainability for smaller firms struggling to grow premium volumes.

Regulatory Pressures and M&A Momentum

FY2024 also saw increased regulatory intervention. In the UAE, Insurance House (IH) was placed under a recovery plan by the Central Bank, supported by its principal shareholder, Finance House. Meanwhile, Methaq Takaful launched a rights issue to raise AED 50 million — with results still pending.

In Saudi Arabia, capital and solvency issues persist. Two insurers remain below the SAR 300 million capital threshold, and three face solvency deficits. The termination of the Gulf General and Gulf Union Al Ahlia merger due to a decline in valuation highlights how market volatility continues to disrupt consolidation plans. Nevertheless, three other Saudi merger proposals remain under review, and Bahrain’s Solidarity Bahrain B.S.C. has signed a sale and purchase agreement (SPA) to acquire BNH’s insurance business.

Ratings Outlook and Strategic Expansion

Approximately 75% of rated insurers in the region retained a stable outlook in FY2024, with new ratings issued for several Saudi entities, including LIVA KSA, Malath, SAICO, and Al Sagr.

Looking ahead, market expansion efforts continue. Orient Insurance secured a final license for its Saudi market entry (effective January 2025), while Saudi Arabia’s Insurance Authority has introduced a 30% local risk cession mandate — a move expected to further stimulate premium growth and support local reinsurers.

Final Thoughts

The GCC insurance market has once again demonstrated its ability to withstand external shocks and regulatory shifts. While the topline figures suggest resilience, the divergence in performance between market leaders and smaller players points to a sector still undergoing structural transformation.

As the region enters 2025 with new regulatory frameworks, ongoing consolidation, and a growing focus on capital efficiency, insurers will need to balance innovation and prudence to navigate the next phase of growth.

For a detailed breakdown of financials, trends, and strategic developments, download the full FY2024 GCC Performance Periodical, by Insurance Monitor and Lux Actuaries & Consultants.

Click here to access the report.