Riyadh, Saudi Arabia — Al-Rajhi Company for Cooperative Insurance (Al-Rajhi Takaful) reported a 24.3% year-on-year rise in net profit after zakat, reaching SAR 111.57 million for Q2 2025, according to a Tadawul disclosure.

Strong Insurance Operations Offset SAR 239M Investment Loss

Insurance revenues grew 2.8% year-on-year to SAR 1.38 billion, supported by rising demand for protection, savings, and medical coverage. Insurance service results surged 161.2% to SAR 130.26 million due to a better revenue mix and lower re-Takaful costs.

However, the company recorded an investment loss of SAR 238.78 million, down from a SAR 104.81 million gain in Q2 2024. This decline came from negative fair value adjustments in unit holders’ fund investments. Excluding these adjustments, net investment income still fell 38.8% to SAR 37.8 million.

Gross written premiums (GWP) rose 3.3% to SAR 2.58 billion. Quarter-on-quarter, net profit increased 22.9% as revenue rose 14.5% and insurance margins improved.

For H1 2025, net profit reached SAR 202.37 million. Total comprehensive income rose 2.2% to SAR 199.91 million. Shareholders’ equity climbed 18.7% year-on-year to SAR 2.29 billion. Earnings per share increased to SAR 2.02 from SAR 2.01 in H1 2024.

What This Means for Investors

  • Core operations resilient: Insurance margins improved despite investment volatility.
  • GWP growth intact: Premium and underwriting strength remain steady.
  • Investment caution: Market-linked funds add risk to portfolio returns.
  • Capital strength: Rising equity and EPS signal long-term financial stability.

 

 

THE SAUDI STANDARD’S VIEW: Al-Rajhi Takaful’s Profit Growth Reinforces Resilience of Saudi Insurance Sector

Despite a large investment loss, the 24.3% rise in Al-Rajhi Takaful Q2 2025 profit confirms the strength and maturity of Saudi Arabia’s cooperative insurance model.

Notably, the 161% surge in insurance service results—driven by higher protection, savings, and medical policy volumes—reflects strong underwriting and cost efficiency. Lower re-Takaful expenses also helped expand margins.

Although the investment portfolio suffered from fair value changes, the insurer’s core operations outperformed. This shows sound risk controls and a stable business model.

Meanwhile, GWP grew 3.3%, mirroring national trends of deeper insurance adoption in personal and corporate segments under Vision 2030.

The 18.7% growth in shareholder equity and steady EPS gains reinforce Al-Rajhi Takaful’s financial health. This rise also signals growing investor confidence in Saudi insurers’ ability to navigate operational and market challenges.

The Al-Rajhi Takaful Q2 2025 profit story reflects how sector reforms are working. Even with investment headwinds, cooperative insurers like Al-Rajhi can deliver value, protect policyholders, and support economic diversification goals.

 

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