Oman Insurance Sector Revenues Climb 3.9% to $1.3bn in 2025
Strong Investment Returns and Growing Digital Adoption Drive Growth, as Regulator Strengthens Industry Confidence for Oman Vision 2040 Goals.
Oman's insurance sector revenues rose by 3.86 percent in 2025, reaching 501.6 million Omani rials ($1.3 billion), driven primarily by stronger investment returns, stable underwriting activity, and the increasing adoption of digital platforms.
According to audited data released by Oman's Financial Services Authority (FSA), national insurance companies saw their revenues increase to 404.2 million rials from 389.5 million rials in the previous year, representing a 3.78 percent growth, as reported by the Oman News Agency.
The figures highlight the sector's resilience amidst economic and operational changes aimed at aligning with Oman Vision 2040 goals, which seek to bolster confidence in the industry.
Abdullah Salim Al-Salmi, FSA Executive President, noted that the insurance sector now contributes 1.3 percent to GDP, up from 1.2 percent in 2024.
Gross direct written premiums increased by 8.92 percent, reaching 551.81 million rials by the end of 2025, compared to 506.63 million rials in the prior year.
Motor insurance, including comprehensive and third-party coverage, made up the largest portion of total gross direct written premiums at 23 percent, followed closely by health insurance at 21.7 percent.
The sector's total assets rose by 6.9 percent to 1.31 billion rials by the end of 2025, with investment returns showing a significant jump of 42.6 percent to 49 million rials from 34.3 million rials in the previous year.
This improvement reflects enhanced portfolio management and stronger investment performance.
Foreign insurers also saw revenue growth, increasing by 4.19 percent to 97.4 million rials compared to 93.4 million rials in 2024.
The gains underscored the competitiveness of Oman's insurance market, characterized by a broader range of products and rising awareness among individuals and businesses regarding the importance of insurance protection.
Net profits for insurance companies rose by 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.
Insurance service results reached 11.7 million rials in 2025, with variations in operational performance across companies depending on factors such as portfolio structures, claims levels, and operating costs.
The overall profitability of the sector was bolstered by better investment returns and more efficient risk management.
Gross direct premiums increased by 8.9 percent to 551.8 million rials from 506.6 million rials in 2024, largely driven by a 42 percent increase in life and savings insurance and a 6 percent rise in health insurance.
Despite this growth, total claims paid decreased by 4.1 percent to 267.8 million rials in 2025 from 279.4 million rials the year before, with loss ratios for both domestic and foreign insurers improving.
The adoption of digital platforms accelerated within the sector, with premiums collected through digital channels increasing by 35.5 percent and bank-collected premiums rising by 38.1 percent.
Takaful insurance revenues edged up slightly by 1.04 percent to 75.35 million rials from 74.57 million rials in 2024, representing 15 percent of the sector's total revenues.
According to audited data released by Oman's Financial Services Authority (FSA), national insurance companies saw their revenues increase to 404.2 million rials from 389.5 million rials in the previous year, representing a 3.78 percent growth, as reported by the Oman News Agency.
The figures highlight the sector's resilience amidst economic and operational changes aimed at aligning with Oman Vision 2040 goals, which seek to bolster confidence in the industry.
Abdullah Salim Al-Salmi, FSA Executive President, noted that the insurance sector now contributes 1.3 percent to GDP, up from 1.2 percent in 2024.
Gross direct written premiums increased by 8.92 percent, reaching 551.81 million rials by the end of 2025, compared to 506.63 million rials in the prior year.
Motor insurance, including comprehensive and third-party coverage, made up the largest portion of total gross direct written premiums at 23 percent, followed closely by health insurance at 21.7 percent.
The sector's total assets rose by 6.9 percent to 1.31 billion rials by the end of 2025, with investment returns showing a significant jump of 42.6 percent to 49 million rials from 34.3 million rials in the previous year.
This improvement reflects enhanced portfolio management and stronger investment performance.
Foreign insurers also saw revenue growth, increasing by 4.19 percent to 97.4 million rials compared to 93.4 million rials in 2024.
The gains underscored the competitiveness of Oman's insurance market, characterized by a broader range of products and rising awareness among individuals and businesses regarding the importance of insurance protection.
Net profits for insurance companies rose by 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.
Insurance service results reached 11.7 million rials in 2025, with variations in operational performance across companies depending on factors such as portfolio structures, claims levels, and operating costs.
The overall profitability of the sector was bolstered by better investment returns and more efficient risk management.
Gross direct premiums increased by 8.9 percent to 551.8 million rials from 506.6 million rials in 2024, largely driven by a 42 percent increase in life and savings insurance and a 6 percent rise in health insurance.
Despite this growth, total claims paid decreased by 4.1 percent to 267.8 million rials in 2025 from 279.4 million rials the year before, with loss ratios for both domestic and foreign insurers improving.
The adoption of digital platforms accelerated within the sector, with premiums collected through digital channels increasing by 35.5 percent and bank-collected premiums rising by 38.1 percent.
Takaful insurance revenues edged up slightly by 1.04 percent to 75.35 million rials from 74.57 million rials in 2024, representing 15 percent of the sector's total revenues.
