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

Posted On: Sep. 20, 2019 7:03 AM CST


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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