Standard & Poor’s expects the performance of Gulf insurance companies to continue improving

Dubai, April 18 / WAM / S&P Global Ratings said that the growth in the total revenues of Gulf insurance companies is likely to come from an increase in demand for insurance in 2024, as a result of the continued economic growth in the region and the increase in prices.

Emir Mujekic, a credit analyst at the agency, said: “We expect the growth of the total revenues of Gulf insurance companies to range between 5% – 15% in 2024, as Saudi insurance companies are likely to be the fastest growing in the region, and favorable economic conditions and price adjustments will remain.” Motor insurance and medical insurance are the main drivers of growth.”

Insurance demand will benefit from ongoing investments in infrastructure projects, population growth, and regulatory initiatives, such as expanding mandatory insurance coverage.

At the same time, declining claims inflation for motor vehicle and non-life insurance activities will help insurers maintain margins.

The agency expected that the trend towards mergers and capital increases would continue in 2024, at least as a result of the imposition of stricter regulations and strong competition.

According to Standard & Poor’s, credit conditions for rated Gulf insurance companies are likely to remain broadly stable in 2024, supported by strong capital margins, growth prospects and adequate profits.

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