GCC insurers: Earnings slide on underwriting volatility and lower yields

Listed GCC insurers saw overall earnings decline in Q1 2025, with net profits slipping by 1.4% to USD 628mn from USD 637mn in Q1 2024. The decline was driven in part by lower investment income, which would typically offset volatility in underwriting performance to maintain overall profitability, according to the Q1 2025 GCC Performance Periodical by Insurance Monitor and Lux Actuaries and Consultants.
Despite a moderately conservative allocation (41% in deposits), 41 of 76 GCC insurers reported lower investment income, largely due to equity market volatility.
UAE and Oman saw improved Net Combined Ratios (NCR), helped by rate corrections post last year’s extreme weather alongside a relatively benign claims environment in Q1 2025.
KSA insurers come under pressure as aggressive pricing has pushed the motor segment’s NCR up to 105%, from 91% in Q1 2024.
Revenue growth stands at 7% led primarily by the UAE with a 21% rise in premiums. Oman’s 10.5% growth was largely attributable to LIVA, whose book is predominantly UAE-based (62%). QATI also continued its pivot into the GCC, now writing 46% of business in the region, up from 11% in 2022.
UAE insurers make progress to address losses and solvency deficits – IH, SALAMA, UNION and ASNIC. 
Notable ratings developments: S&P lifts “CreditWatch Negative” on UAE’s SALAMA; Fitch flags Saudi’s ALSAGR on non-compliance and governance concerns.