S&P expects Saudi insurance sector revenues to grow 10-15% in 2025

S&P Global Ratings expected that the revenues of the Saudi insurance sector will grow between 10% and 15% in 2025, following strong growth since 2022.

The rating agency added in a report that Saudi insurance companies’ ratings are expected to remain stable in 2025, in line with its ratings for the sector’s companies and its future outlook, which is stable for all companies under coverage in Saudi Arabia.

However, the intense competition, especially in third-party motor insurance, alongside further declines in interest rates, may put pressure on insurance companies' profits and capital adequacy in 2025.

It noted that with increased regulatory requirements and the inability of some insurance companies to meet the minimum capital requirements, merger and acquisition activities are seen to persist in 2025.

S&P also predicted continued growth in insurance penetration in Saudi Arabia, driven by the expected market growth potential.