Saudi insurers grow on premiums as Savola’s one-offs fade and Red Sea sinks deeper

Savola’s 3Q income slumps

Savola Group’s 3Q net income fell 66.7% y-o-y to SAR 128.5 mn, largely because of non-recurring gains recorded over the same quarter last year, according to a Tadawul filing. The 3Q 2025 figure included an SAR 247 mn reversal of prior-year zakat accruals and an SAR 40 mn gain attributable to Savola from the settlement of put option liabilities. Excluding one-offs, recurring net income was broadly flat at SAR 127 mn, against SAR 129 mn a year earlier, with revenue up 1.5% to SAR 6.55 bn.

Food processing drove the quarter, while retail weighed it down. Net income from Savola’s food processing segment rose 31% to SAR 131 mn on higher edible oil volumes and prices, while the retail segment swung to an SAR 18 mn loss from an SAR 24 mn gain as quarterly revenue fell 2.8% and competitive pricing pressured gross margins, according to the company’s earnings release (pdf). Food services returned to an SAR 3 mn gain from an SAR 48 mn loss, mostly due to the absence of a SAR 36 mn impairment booked a year earlier, while frozen food net income edged up to SAR 9 mn from SAR 8 mn. Group EBITDA fell 6.6% to SAR 576 mn.

The 9M picture shows stronger underlying growth, led by food processing. Net income declined 22.2% y-o-y to SAR 529.6 mn, while revenue increased 3.1% to SAR 20.13 bn. The decline reflects the absence of the prior-year SAR 247 mn zakat accrual reversal, a further SAR 53 mn reversal of other accruals, and the SAR 40 mn gain from settling put option liabilities. Excluding one-offs, Savola puts recurring net income up 26% at SAR 500 mn, driven by food processing, where recurring income rose to SAR 412 mn from SAR 283 mn. Panda’s revenue was broadly stable at SAR 8.5 bn, down 0.3% y-o-y, but competitive pricing narrowed its gross margin to 23.5% from 24.9%, and its recurring income fell to SAR 28 mn from SAR 72 mn.

Red Sea sinks deeper into the red

Red Sea International’s net loss widened to SAR 31.2 mn in 3Q from SAR 1.7 mn a year earlier as revenue fell 62% y-o-y to SAR 375.2 mn, according to a Tadawul filing. The company attributed the drop to a slower pace of project execution.

The filing points to three drivers behind the drop: lower gross income, higher credit-loss provisions, and rising finance costs. Gross income fell 55% y-o-y to SAR 39.9 mn, tipping the company into an operating loss of SAR 33.6 mn from operating income of SAR 25 mn a year earlier. Provisions for expected credit losses on ageing receivables rose to SAR 9 mn from SAR 4.9 mn, while finance costs rose 25% to SAR 14 mn as borrowings climbed to SAR 648 mn from SAR 401.6 mn at the end of 2025, according to the company’s earnings release (pdf).

Over 9M, net loss attributable to shareholders widened to SAR 45.5 mn from SAR 14.2 mn, as revenue fell 34.5% to SAR 1.61 bn. Operating outflows climbed to SAR 243.8 mn from SAR 2.9 mn a year earlier. Facilities management and rental was the only segment to grow, with revenue rising 52% to SAR 192 mn and net income up to SAR 51.5 mn from SAR 17.8 mn. General construction led the drop in revenue, down 33% to SAR 1.36 bn, which the company attributed mainly to the regional geopolitical situation. The segment swung to an SAR 13.3 mn net loss from SAR 121.1 mn in net income, while revenue from non-concrete residential and commercial buildings fell 79% to SAR 66 mn.

What’s next: Red Sea is awaiting approval from the Capital Market Authority and shareholders for an SAR 280 mn rights issue that would lift its capital to SAR 762.7 mn, and plans to carve its main businesses out into separate entities. It also expects an amortization charge tied to a past acquisition — SAR 73.1 mn so far this year — to fall significantly from 1Q 2027, when a major intangible asset reaches the end of its useful life, according to the filing.

Medical and motor lines drive Medgulf growth

Mediterranean and Gulf Ins. and Reins. (Medgulf) posted a 34.5% y-o-y rise in net income to SAR 24.1 mn in 3Q, as stronger underwriting offset a drop in investment income, the insurer said in a Tadawul filing. Ins. revenue jumped 46.3% to SAR 1.5 bn and gross written premiums grew 56.5% to SAR 1.3 bn, led by medical (SAR 358.8 mn) and motor (SAR 99.9 mn).

Behind the numbers: The ins. services result before reinsurance rose 54% y-o-y to SAR 103.5 mn, lifting the total ins. result to SAR 24.5 mn from SAR 9.1 mn. Working against that, net investment income fell 95.9% to SAR 0.6 mn, on SAR 20.6 mn of fair-value losses on financial assets amid market volatility and regional geopolitical developments, compared to fair-value gains a year earlier.

9M earnings nearly tripled: Net income rose 189.7% y-o-y to SAR 104.5 mn, alongside a 33.2% increase in ins. revenue to SAR 4.1 bn. Gross written premiums grew 44.5% to SAR 5.18 bn, led by growth in medical (SAR 1.3 bn) and motor ins. (SAR 322.8 mn).

Reins. helps Tawuniya recover from 1H slump

The Company for Cooperative Ins. (Tawuniya) saw net income after zakat jump 74.1% y-o-y to SAR 301.7 mn in 3Q, reversing its 1H earnings decline and bringing 9M earnings back to growth, according to a Tadawul filing. Ins. revenue rose 20.3% to SAR 6.51 bn.

Reins. helped turn the quarter around: Tawuniya’s ins.-service result before reins. fell 51.3% y-o-y to SAR 471.3 mn as higher expenses in property and casualty (P&C) ins. weighed on performance. After reins., however, net ins.-service income increased 21.1% to SAR 413.6 mn, supported by recoveries and improved underwriting. P&C’s contribution after reins. rose to SAR 81.7 mn from SAR 47.3 mn, while health’s contribution climbed to SAR 315 mn from SAR 275.7 mn. Motor’s contribution slipped to SAR 29.1 mn from SAR 35.8 mn.

Premium growth was uneven: Gross written premiums increased 6.8% y-o-y to SAR 5.44 bn, led by a 36.7% increase in motor premiums and 14.9% growth in protection and savings. Health premiums slipped 1.3%, while P&C premiums declined 25.9%. Health remains Tawuniya’s largest business, accounting for 72% of written premiums and 74% of ins. revenue in 1H, CEO Othman AlKassabi told Asharq Business.

Investment income added support, while costs rose. Net investment income rose 25.9% y-o-y to SAR 233.4 mn on stronger commission income and fair-value gains, while net ins. and reins. finance expenses fell 32.3% to SAR 32.7 mn, partly offsetting higher costs elsewhere. Other operating expenses climbed 18.3% to SAR 289.7 mn, which the company attributed to investment in new capabilities and subsidiaries, while finance charges rose to SAR 12.6 mn from SAR 1.8 mn.

The 9M picture remains tighter: Net income edged up 1% y-o-y to SAR 911.6 mn despite a 17.5% rise in ins. revenue to SAR 18.5 bn. The ins.-service result before reins. swung to an SAR 1.95 bn loss from an SAR 2.74 bn gain a year earlier, reflecting elevated P&C costs. After reins., the net ins.-service result remained positive at SAR 1.03 bn, though it fell 3.7% y-o-y. Higher net investment income provided some relief, up 17.2% to SAR 649.5 mn, and the investment portfolio expanded 11.4% to SAR 13.85 bn.

Underwriting lifts Wataniya's 3Q income

Wataniya Ins. nearly tripled its 3Q net income to SAR 21.2 mn, up 188.9% y-o-y, as stronger ins. results and lower operating expenses outweighed a decline in investment income, according to a Tadawul filing. Income before zakat and tax rose 80.4% to SAR 25 mn, while ins. revenue rose 71% to SAR 745.1 mn on higher earned premiums from business growth.

The ins. book did the heavy lifting: Net ins. results more than tripled y-o-y to SAR 19.5 mn from SAR 5.8 mn, driven by the company’s directly written business, even as the ins. service result before reins. fell 28.4% to SAR 57.9 mn. Other operating expenses fell 27.4%, which together outweighed a 25.4% drop in net investment income to SAR 17.6 mn.

Nine-month earnings also improved: Wataniya's net income more than doubled to SAR 30.4 mn from SAR 14 mn a year earlier, while ins. revenue grew 55.9% to SAR 2.09 bn. Net ins. results increased 35.7% to SAR 17.6 mn, although the ins.-service result before reins. fell 33.1% to SAR 219.9 mn. Investment income rose 7.5% to SAR 59.3 mn over the nine months, contrasting with the decline recorded in 3Q.