Saudi insurance market to see mergers soon, says official

The Saudi insurance market is expected to see mergers soon, Al-Yaum newspaper reported, citing Adel Al-Issa, spokesperson of insurance companies.

“Mergers have become a necessary and strategic option for most struggling insurance firms, especially small and medium ones,” Al-Issa said.

“These companies see that forming larger entities capable of competing might be the solution amid the rising administrative costs and fierce competition,” he added.

According to data compiled by Argaam, Walaa Cooperative Insurance Co. and MetLife AIG ANB Cooperative Insurance Co. have signed a non-binding agreement to study a potential merger.