The combined profit after tax of the eight listed companies surged by 414% to OMR34m ($88.5m) from 2025 from OMR6.6m in 2024, according to an update by BADRI Management Consultancy.
In its report, “Oman Listed Insurance Industry Performance Analysis – 2025”, the international actuarial and risk consultancy said that the 2025 financial results showed a meaningful reversal from the challenges experienced in 2024.
A defining feature of the 2025 performance was the turnaround in LIVA's financial results. The Sultanate's largest moved from a loss of OMR5.0m in 2024 to a profit of OMR14.2m in 2025, reflecting a 383% improvement, driven by the absence of adverse weather-related claims that had burdened the prior year.
For the update, BADRI sourced data from the financial statements of the publicly listed companies.
Sector-wide recovery
The data show that recovery in the financial performance of the listed insurers was not confined to a single entity. Excluding LIVA's contribution, sector-wide profit still grew by an impressive 70% year-on-year, underscoring the breadth and sustainability of the improvement.
The insurance service results of the listed companies surged by 183%, rising from OMR12.3m in 2024 to OMR34.8m in 2025, with the top three companies collectively registering a 386% increase in their insurance service results. Excluding LIVA's impact, the overall increase in insurance service results still stood at a healthy 17%, reflecting genuine operational improvement across the broader market. The insurance service ratio correspondingly improved to 4.9% in 2025, up from 1.9% in 2024.
Investment income also contributed positively to the 2025 results, with investment yields averaging 6% across the industry. The stabilising role of investment returns remained important for companies with weaker insurance results, partially offsetting underwriting losses.
The weighted average gross combined ratio stood at 69% in 2025, with all eight listed companies recording gross combined ratios below 100%, confirming sector-wide underwriting profitability. On a net basis, the weighted average combined ratio was 95%.
The weighted average profit margin improved significantly to 4.7% in 2025, compared to margin of 1.0% in 2024. Return on equity (ROE) rebounded strongly to 11% in 2025, recovering from a low of 2% in 2024 and reaching its highest level in recent years, reflecting improved efficiency and shareholder returns across the industry.
Margin pressures
Despite the positive trajectory, margin pressures persist. Rising costs, continued climate-related claims exposure, and competitive pricing dynamics remain key challenges — particularly for smaller insurers.
BADRI said, “To sustain profitability and remain competitive, companies must continue to refine their pricing models, strengthen risk management and reinsurance frameworks, optimise expense structures, and actively manage net insurance finance income as a growing driver of overall financial performance.”