Fitch expects M&A activity to accelerate in Saudi insurance sector

Saudi Gazette report

RIYADH — Fitch Ratings expects the pace of mergers in the Saudi insurance sector to accelerate over the next two years. Fitch based its forecast on new regulatory capital requirements and weak profitability in underwriting premiums amid intense price competition.

Fitch said that some smaller insurers may struggle to meet these requirements or maintain profitability, and may merge with or be acquired by larger insurers as a result.

The insurance market in Saudi Arabia is dominated by a few large companies, such as Tawuniya and Bupa Arabia, with their combined market share reaching 52% in 2024.