LIVA Insurance Nine-Month Profit Nearly Doubles

Riyadh, Saudi Arabia — LIVA Insurance Co. nearly doubled its net profit in the first nine months of 2026, driven by rapid premium growth in motor and group life businesses. Net profit after zakat attributable to shareholders reached 32.795 million SAR, up 97.7% from 16.585 million SAR in the same period last year. Earnings per share climbed to 0.82 SAR from 0.41 SAR.

Quarterly Snapshot

The third quarter alone delivered 16.308 million SAR in net profit, a 44% jump from 11.328 million SAR in the same quarter last year. Compared to the previous quarter, profit surged 76.2% from 9.256 million SAR. Insurance revenues for Q3 hit 277.820 million SAR, up 91.2% year-on-year and 21.7% sequentially. Investment income for the quarter rose 43.1% to 11.513 million SAR. Net insurance financing expenses fell sharply, dropping 63.1% to just 430 thousand SAR.

Key Drivers

• Nine-month insurance revenues grew 69.5% to 689.135 million SAR, adding 282.461 million SAR versus the prior year period.
• Net insurance service result surged 268.2% to 18.002 million SAR from 4.889 million SAR, signaling better underwriting discipline.
• Total investment income rose 28.1% to 32.705 million SAR over nine months.
• Other operating expenses fell 13.1% to 9.563 million SAR, reflecting cost control.
• Zakat provisions increased by 5.211 million SAR over nine months, partially offsetting gains.
• Total shareholders’ equity reached 511.473 million SAR, up 11.3% from 459.645 million SAR a year ago.
• Retained earnings grew to 37.048 million SAR from 4.253 million SAR at year-end, a near ninefold increase.

What This Means for Investors

• LIVA Insurance is growing revenue fast — 69.5% in nine months — but investors should watch whether underwriting margins hold as the book scales.
• The Q3 result-of-insurance-services line fell 33.2% year-on-year, even as revenues surged, suggesting rising claims or acquisition costs that warrant scrutiny.
• Strong investment income and lower operating costs helped bridge the gap, but reliance on investment returns adds earnings volatility.
• Retained earnings have grown nearly ninefold this year, strengthening the balance sheet and improving LIVA’s capacity to absorb future losses or support growth.

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THE SAUDI STANDARD’S VIEW: LIVA’S PROFIT SURGE SIGNALS MATURING INSURANCE FUNDAMENTALS

LIVA Insurance’s near-doubling of nine-month net profit is not merely a headline number — it reflects structural improvements in underwriting discipline, cost management, and balance sheet strength that deserve serious investor attention. The results position LIVA as one of the more compelling growth stories in the Saudi insurance sector this year.

• REVENUE SCALE IS REAL, BUT MARGIN SUSTAINABILITY IS THE TEST

A 69.5% jump in nine-month insurance revenues represents genuine commercial momentum in motor and group life segments, two lines with strong demand tailwinds in the Kingdom. The more meaningful signal, however, is the 268.2% surge in net insurance service result, indicating that growth is being accompanied — at least partially — by improved underwriting quality. Investors should monitor whether this discipline holds as the premium book continues to scale rapidly.

• Q3 SERVICE RESULT COMPRESSION WARRANTS CAREFUL READING

Despite the headline profit growth, the result-of-insurance-services line contracted on a year-on-year basis in the third quarter, even as revenues surged over 91%. This divergence points to upward pressure on claims costs or policy acquisition expenses that management will need to address proactively. For investors, this metric — not revenue growth alone — is the most reliable indicator of long-term profitability trajectory.

• INVESTMENT INCOME AND COST CONTROL PROVIDE MEANINGFUL BUFFER

A 28.1% rise in nine-month investment income, combined with a 13.1% reduction in operating expenses, demonstrates that LIVA is managing both sides of the income statement with increasing sophistication. The sharp 63.1% decline in net insurance financing expenses in Q3 further reduces drag on earnings. That said, earnings supported by investment returns carry inherent rate-cycle sensitivity, and investors should value the underwriting business independently.

• BALANCE SHEET STRENGTHENING RAISES STRATEGIC OPTIONALITY

Shareholders’ equity growing past 511 million SAR and retained earnings expanding nearly ninefold within the fiscal year represent a qualitative shift in LIVA’s financial standing. A stronger capital base improves the company’s ability to pursue selective growth, absorb adverse loss developments, and potentially engage regulators on expanded business lines. This balance sheet trajectory elevates LIVA from a recovery story to a growth-platform candidate.

Saudi Arabia’s insurance sector is a direct beneficiary of Vision 2030’s drive to deepen financial services penetration, expand mandatory coverage requirements, and grow the non-oil economy. LIVA’s performance reflects an industry at an inflection point — where companies that combine underwriting discipline with operational efficiency will emerge as long-term compounders. As the Kingdom’s workforce, infrastructure, and healthcare ambitions continue to expand, insurers with demonstrated scale capability and improving fundamentals are well positioned to capture a disproportionate share of structural demand growth.