Moody's affirms Walaa at A3 as the Saudi insurer returns to profit after cutting motor exposure

Moody's Ratings has affirmed the A3 insurance financial strength rating of Walaa Cooperative Insurance, with a stable outlook, Middle East Insurance Review reported on 28 October. According to the report, Moody's links the decision to Walaa's return to profit through better underwriting and higher investment income, and says its combined ratio is now below 100%.

Walaa lost SAR175m in 2025, which Moody's puts down to fierce competition in Saudi motor third-party liability, inadequate pricing and adverse claims development. In the first half of 2026 the insurer reported net profit after zakat of SAR43.5m, against a net loss of SAR117.1m a year earlier, an annualised return on average equity of about 5%.

Motor returned to a modest technical profit in the second quarter, helped by lower motor exposure, a more diversified mix and continued price increases, the report says. Moody's expects "continued pricing discipline, portfolio rebalancing and claims cost controls" to support further gains, but warns that heightened regional geopolitical risk could affect the Saudi market. Walaa's regulatory solvency ratio has been around 200%.