Profit for the second quarter alone reached SAR 467.42 million, a modest 1.7 per cent increase on the same quarter of the previous year, while gross written premiums slipped by 6.3 per cent to SAR 5.37 billion. Operating income from insurance services jumped by 18.4 per cent to SAR 5.23 billion. Management pointed to a sharp rise in investment income—up 140 per cent in H1—to SAR 430.8 million, as a key driver of margin growth.
Chief executive Mohammed Al Kassabi noted that the company’s investment portfolio had exceeded SAR 12 billion and delivered a 13 per cent year-on-year return in Q2, attributing this to a focus on low-risk long-term assets and the absence of borrowing for its investment strategy. He said the firm’s retention of 85 per cent of renewal clients and 90 per cent renewal rate in certain segments underpin its confidence in core operations.
Tawuniya commands about 27 per cent market share in the health-insurance segment within Saudi Arabia; Al Kassabi said the company is investing in the broader ecosystem, including a primary-care-clinic platform and a vehicle-repair spares business to complement its motor-insurance offering. He expects its facultative reinsurance business to double over the next five years, as it finalises strategy for that segment in later quarters.
Analyst commentary was broadly favourable. Al Rajhi Capital upgraded the company’s rating to “Overweight” and set a target price of SAR 158, forecasting net profit of SAR 1.12 billion in 2025, SAR 1.21 billion in 2026 and SAR 1.38 billion in 2027. While it flagged margin pressure in property-and-casualty lines due to more-normal claims ratios, it pointed to momentum in the medical and motor lines as offsetting factors.
Nevertheless, Tawuniya faces material headwinds. Motor and property segments in the wider market are grappling with increasing claims costs and pricing pressure. The firm acknowledged that increased strategic spending on infrastructure and ecosystem expansion has raised insurance-expense ratios, reflecting a medium-term trade-off between growth and margin. The broader insurance sector in Saudi Arabia reported a combined profit drop of 38 per cent in H1, underscoring the challenging operating environment.
Looking ahead, the firm expects growth in medical, motor and reinsurance lines, supported by Saudi Arabia’s demographic expansion and regulatory emphasis on compulsory health cover. It will, however, need to manage insurance-service margins, which are projected to soften to around 5.6 per cent in FY25–27 down from 6.1 per cent in FY24. The firm’s ability to maintain investment-income strength amid shifting global markets will also influence its future path.
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Saudi Arabia