Riyadh, Saudi Arabia — Malath Cooperative Insurance Company posted a net profit of SAR 16.6 million in H1 2025, a 42.8% increase from SAR 11.6 million in the same period last year. Higher insurance revenues and better operational performance drove the growth.

Insurance Revenue Growth Spurs Premium Income

Insurance revenue surged 63.5% year-on-year to SAR 706.08 million, fueled by a broader premium portfolio and strong motor insurance results. Gross written premiums rose 23.3% to SAR 763.5 million compared to H1 2024.

However, the company reported a net insurance service result loss of SAR 6.75 million, wider than the SAR 309,000 loss a year earlier. This was due to higher service costs. On the other hand, a SAR 12.1 million gain in other income (+58.6%) and lower reinsurance costs helped offset this pressure.

In Q2 2025, insurance revenue rose 62% to SAR 365.95 million. Net profit for the quarter jumped to SAR 6.68 million, up sharply from SAR 151,000 in Q2 2024. This was driven by a SAR 14.4 million gain in net insurance service results and SAR 7.4 million in other income.

Nonetheless, net profit declined 32.4% quarter-on-quarter. This was due to a 67.4% drop in investment income to SAR 3.9 million and a 30.6% fall in other income. Despite that, insurance service results improved by 136.2%, showing stronger operational delivery.

Shareholders’ equity climbed 11.9% to SAR 451.34 million. Accumulated losses dropped to 18.3% of capital, down from 24.7% last year. Earnings per share reached SAR 0.33, up from SAR 0.23 in H1 2024.

What This Means for Investors

  • Robust premium growth: Strong GWP and insurance revenues reflect healthy demand across key segments.
  • Underwriting under pressure: Higher service costs widened losses, but other income provided relief.
  • Operational rebound: Q2 improvements in insurance services and net profit point to better margins.
  • Strengthened balance sheet: Higher equity and reduced accumulated losses signal improving fundamentals.

 

 

THE SAUDI STANDARD’S VIEW: Malath Insurance H1 2025 Profit Reflects Sector Growth and Operational Maturity

The Malath Insurance H1 2025 profit increase of 43% highlights the company’s improved performance amid a rapidly evolving Saudi insurance landscape. A 64% surge in insurance revenues underscores expanding market reach, particularly in motor insurance.

While the net insurance service result remained negative, the company boosted profitability through other income and better reinsurance cost control. This shows growing flexibility in managing operational expenses.

In Q2, net profit soared over 4,000% year-on-year, thanks to significant gains in core insurance results. The 136.2% quarter-on-quarter rise in net insurance service results reflects a clear operational turnaround.

Moreover, the balance sheet is strengthening. Shareholder equity rose nearly 12%, while accumulated losses dropped significantly. These changes suggest increasing financial resilience, supported by cost discipline and strategic execution.

Malath’s performance aligns with Vision 2030 goals, emphasizing actuarial strength, risk maturity, and a deeper financial sector. The Malath Insurance H1 2025 profit also points to a maturing industry shifting toward high-margin, tech-driven insurance solutions.

Malath is positioned to deliver sustained value as the market evolves through focused growth, operational agility, and financial stability.

 

Related Reading

Browse the latest Saudi investment trends in insurance and earnings performance

Track financial results and underwriting trends at Tadawul-listed insurers