2025 has to date represented a challenging yet transformative period for Oman's insurance sector, says BADRI Management Consultancy, an international actuarial and risk consulting company.
Elaborating on this in a report, titled “Oman— Listed Insurance Industry Performance Analysis – Q3 2025”, released yesterday, BADRI said that the after-tax profit of the eight listed Omani insurance companies surged by 935%, shifting to a profit of OMR28.4m ($73.9m) in the first three quarters of this year (3Q2025) from a loss of OMR3.4m in 3Q2024.
The Sultanate’s biggest insurer, LIVA, which had recorded a loss the previous year due to adverse weather events, achieved a strong turnaround with a 226% increase in profit in 3Q2025, substantially enhancing overall industry results. Excluding LIVA, the sector still posted a robust 108% year-on-year profit growth. It is important to note that the net profit of takaful companies is reported on a combined basis, encompassing both policyholder and shareholder accounts for comparability.
Turning to the top line, the report said that conventional insurers achieved a 13% increase, in insurance revenue that rose to OMR472m in 3Q2025 from OMR417m in the corresponding period in 2024. LIVA drove this growth by posting a 24% increase and maintaining the largest market share.
Takaful
In the Shariah-compliant insurance market, the performance of takaful companies remained consistent with a modest 0.3% growth in revenue that increased marginally from OMR55.0m in 3Q2024 to OMR55.1m in 3Q2025. Notably, takaful insurers implemented IFRS 17 during the year, aligning their financial reporting with broader industry standards.
Insurance service results
Insurance service results for the analysed listed companies surged by 3,452%, rising from OMR0.8m to OMR29.5m mainly due to the impact of LIVA. If LIVA were to be excluded, the overall increase would be 19% over 3Q2024.
Investment income increased by 43%, reflecting stronger asset performance and making a positive contribution to overall financial results.
BADRI said, “Rising costs, higher climate-related claims, and aggressive pricing strategies are placing pressure on industry margins. To stay competitive, companies need to enhance risk management, refine pricing models, control expenses, and strengthen their financial position. Looking ahead, insurers that adapt swiftly, leverage advanced data analytics, and proactively plan for emerging risks will be best positioned to succeed in an increasingly challenging market.”
The data for the report was sourced from available financial statements of publicly listed companies.