Saudi Arabia is expected to see an increase in mergers and acquisitions (M&A) in its insurance sector as the GCC region enters a significant consolidation phase.
The latest financial results of 77 listed insurers across the GCC reveal a general decline in underwriting performance, with the Net Combined Ratio (NCR) rising by 1.3 percentage points, according to the "Q3 2024: GCC Performance Periodical" by Insurance Monitor in association with Lux Actuaries and Consultants.
Summations and recommendations made at the 19th Annual Gulf Insurance Forum (GIF) held in Dubai on 15-16 October 2024 focused on growing weather-related risks and the best means to confront them. The Forum also addressed the increasing importance of technology in the insurance market.
Etihad Credit Insurance (ECI) has signed Memoranda of Understanding (MoUs) with Saudi EXIM Bank and Credit Oman during its participation in the Annual General Meeting of Berne Union, in Hamburg, Germany, which was held on 15-17 October.
2024 is set to be another profitable year for the Islamic insurance sector in the GCC. Net profits in 2023 had already reached a record of almost $1bn, mainly due to rate adjustments in previously underperforming lines and higher investment returns, says S&P Global Ratings (S&P).
Listed insurers in the GCC region have registered an impressive growth of 8.0% in after-tax profits with a mere y-o-y increase of 1.1% points in the net combined ratio (NCR) as the damage from a series of rain events, including the UAE's record-breaking rainfall in April 2024 has been contained to a large extent by reinsurance arrangements for most insurers.
Islamic and takaful insurers in the Gulf Cooperation Council (GCC) region continue to benefit from favourable growth prospects, said S&P Global Ratings (S&P).
Higher investment income averaging at a quarterly rate of return on investments (ROI) of 1.7% (1Q2023: 1.3%) has boosted the first-quarter earnings of 77 listed insurers in the GCC region, according to Insurance Monitor, a research and consulting firm.
Growth prospects for the insurance sector remain plentiful in the insurance markets of the Gulf Cooperation Council (GCC), said global credit rating agency AM Best.
GCC insurers' top-line growth is expected to range between 5% and 15% in 2024, with Saudi insurers likely to expand at the fastest pace, says S&P Global Ratings (S&P).