Solidarity Bahrain's successful pursuit of an inorganic growth strategy has strengthened the group's position as the number one insurance provider in Bahrain and marks a step towards growing an international business. This statement appears in Solidarity's 2024 annual report released last week.
In 2024, Solidarity merged and integrated Al Hilal Life and its subsidiary, Al Hilal Takaful, into its operations. With the completion of this acquisition, Solidarity entered the under-penetrated life insurance and savings sector that offers significant opportunities for growth for Solidarity, and will complement the company’s leading position in medical and motor insurance. Solidarity’s new scale and capability in the life segment will be complemented by a series of partnerships with banks to enhance distribution capability through a bancassurance model. Agreements have been made with several large institutions in Bahrain to partner in life distribution,
Building on this momentum, Solidarity signed a Sale and Purchase Agreement in January 2025 with Bahrain National Holding Company for the acquisition of 100% of the issued share capital of both Bahrain National Insurance Company (BNI) and Bahrain National Life Assurance Company (BNL). This acquisition is set to further solidify Solidarity’s position as the leading insurance provider in Bahrain, enhancing its business profile, market share, and profitability.
The year 2024 also saw the successful acquisition of a 29% stake in Alliance Insurance, a UAE life insurance company listed on the Dubai Financial Market. This transaction represents Solidarity Insurance’s first international acquisition. Solidarity has announced its intention to increase its shareholding beyond 29% in the future.
The establishment of a presence in the UAE delivers exposure to a large market of great potential.
Outlook
The Bahraini insurance industry is set for steady expansion, with the health insurance segment poised for significant growth, driven by rising insurance premiums and regulatory developments, the annual report says.
The sector will receive a major boost with the implementation of mandatory health insurance, initiated by the Supreme Council for Health, with its first phase expected to go live this year.
Bahrain’s economy is projected to grow by 3.5% in 2025, driven by strong performance in the manufacturing, financial services, and tourism sectors. The government’s continued focus on economic reforms and diversification is attracting increased foreign investment, further strengthening these key industries. Inflation is expected to remain below 2% in 2024 and 2025, ensuring a stable economic environment conducive to sustained growth.