Tawuniya Insurance Company, one of the leading insurance companies in the Kingdom of Saudi Arabia, announced strong financial results for the fiscal year 2025, recording net profits after zakat and tax of SAR 1.1 billion , compared to SAR 1.02 billion in 2024, achieving an annual growth rate of 7.93% .
This outstanding performance reinforces the company’s leading position in the Saudi insurance market and reflects the success of its expansion strategy and its ability to achieve sustainable growth in a dynamic economic environment.
Background on Tawuniya Insurance Company
Established in 1986 as the first nationally licensed insurance company in the Kingdom, Tawuniya has since played a pivotal role in the development of the Saudi insurance market. As a publicly listed company on the Saudi Stock Exchange (Tadawul), Tawuniya is a cornerstone of the financial sector, offering a wide range of insurance products including health, motor, general, and protection and savings insurance, serving a broad customer base of individuals and businesses.
A detailed analysis of the drivers of earnings growth
This remarkable profit growth is attributed to a range of positive operational and investment factors, reflecting the effectiveness of the company's strategy and its ability to adapt to market changes. According to the published financial statements, the key drivers of this growth can be summarized as follows:
- Insurance revenue growth: Insurance services revenue increased significantly by 19.31% to reach SAR 3.38 billion, driven by a 20.28% increase in gross written premiums to SAR 23.84 billion. This growth reflects the company's increased market share and customer confidence in its services, as well as an improved loss ratio indicating effective risk management.
- Strong Portfolio Performance: The company's investment portfolio achieved robust growth, with net investment income increasing by 12.25% to reach SAR 763.7 million. This is a result of a 9.29% increase in the size of the investment portfolio, demonstrating a successful investment strategy aimed at maximizing returns for shareholders and unit holders.
- Improved underwriting results: Net insurance results recorded a profit of SAR 1.116 billion, with a slight growth of 0.43%, which came as a result of the overall improvement in the performance of insurance services and claims management.
The importance of the results and their impact on the Saudi economy
These financial results are of particular importance both locally and regionally. Locally, Al-Taawuniyah's figures underscore the strength and resilience of the Saudi insurance sector, a vital sector targeted for development under the Financial Sector Development Program stemming from the Kingdom's Vision 2030. The growth of insurance companies contributes to enhancing the financial stability of individuals and businesses and supports the growth of the non-oil economy. Furthermore, the positive performance of a company the size of Al-Taawuniyah strengthens investor confidence in the Saudi stock market.
The company's and the insurance sector's future outlook
Looking ahead, Al-Taawuniya appears well-positioned to continue its growth trajectory. The Kingdom's economic environment is undergoing positive transformations, driven by the launch of major projects and a growing awareness of the importance of insurance, coupled with the ongoing implementation of mandatory insurance programs such as health and vehicle insurance. These factors combine to create promising opportunities for premium growth and customer expansion, supporting the company's positive future outlook.
