Saudi insurers' weak profits could trigger M&As: Moody's

Moody's Investors Service Inc. said that Saudi insurers reported weak profits in the first half, which could lead to mergers and acquisitions in the sector, Zawya reports. The sector also faces a likely increase in the minimum capital requirement for primary insurers to 500 million Saudi Arabian riyal ($133 million) from SAR 100 million currently. "Small to medium-sized insurers may find it difficult to meet this five-fold increase from their own resources, given current profitability headwinds," Moody's said.

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