Saudi insurance sector to see accelerated M&A activity in coming years: Al-Issa

Adel Al-Issa, the official spokesman for insurance companies in Saudi Arabia

Adel Al-Issa, the spokesman for insurance companies in Saudi Arabia, said mergers and acquisitions (M&As) are deemed a strategic option for insurance companies in the Kingdom, especially medium and small ones, driving long-term durability and more market competition.

Speaking to Al-Arabiya TV, the official added that several insurers opted for either mergers or acquisitions in the past few years, some of which took place and others did not for various reasons. He expects the coming years to witness several M&As among the Kingdom’s insurance companies.

Al-Issa also pointed out that Saudi regulatory authorities are urging insurance companies to consolidate to form larger entities, especially in light of the disparity in size and weight of market players.

Given the improvement witnessed sector-wise, the Saudi insurance market is expected to reach the Vision 2030 goal for the sector’s contribution to non-oil GDP growth of 4.3% ahead of schedule.