JEDDAH: Oman’s insurance sector revenues rose 3.86 percent in 2025 to 501.6 million Omani rials ($1.3 billion), driven by stronger investment returns, stable underwriting activity, and growing digital adoption.
Audited data released by Oman’s Financial Services Authority showed revenues of national insurance companies rose to 404.2 million rials from 389.5 million rials a year earlier, registering a 3.78 percent growth, according to the Oman News Agency.
The figures underscore the sector’s resilience amid economic and operational shifts as the regulator seeks to strengthen confidence in the industry in line with Oman Vision 2040 goals.
In the 22nd edition of the Annual Insurance Market Index 2025, FSA Executive President Abdullah Salim Al-Salmi said: “The insurance sector’s contribution to GDP increased to 1.3 percent, up from 1.2 percent in 2024. Total gross direct written premiums increased by 8.92 percent, reaching 551.81 million by the end of 2025, compared to 506.63 million in the previous year.”
He added: “Motor insurance, including comprehensive and third-party coverage, remained the largest contributor, accounting for 23 percent of total gross direct written premiums, followed by health insurance at 21.7 percent.”
The sector’s total assets rose 6.9 percent to 1.31 billion rials by the end of 2025, while investment returns jumped 42.6 percent to 49 million rials from 34.3 million rials a year earlier, reflecting improved portfolio management and stronger investment performance, ONA reported.
Foreign insurers also posted revenue growth of 4.19 percent to 97.4 million rials, compared with 93.4 million rials in 2024.
The agency said the gains reflected the competitiveness of Oman’s insurance market, a broader range of insurance products, and rising awareness among individuals and businesses about the importance of insurance protection.
Net profits of insurance companies increased 36 percent to 34.3 million rials, up from 25.2 million rials in 2024, supported by “higher investment income and improved operational performance in some companies,” ONA reported.
Insurance service results reached 11.7 million rials in 2025, with operational performance varying across companies depending on portfolio structures, claims levels, and operating costs. Improved investment returns and more efficient risk management supported the sector’s overall profitability.
Gross direct premiums rose 8.9 percent to 551.8 million rials from 506.6 million rials in 2024, driven by a 42 percent increase in life and savings insurance and a 6 percent rise in health insurance.
Total claims paid declined 4.1 percent to 267.8 million rials in 2025 from 279.4 million rials a year earlier, while loss ratios for both domestic and foreign insurers improved.
Digital adoption also accelerated, with premiums collected through digital channels increasing 35.5 percent and premiums collected through banks rising 38.1 percent.
Takaful insurance revenues edged up 1.04 percent to 75.35 million rials from 74.57 million rials in 2024, accounting for 15 percent of the sector’s total revenues.
