The year 2025 turned out to be a challenging yet transformative one for Oman’s insurance sector, said international actuarial and risk consulting company BADRI Management Consultancy.
Elaborating on this in a report, titled “Oman — Listed Insurance Industry Performance Analysis – Q3 2025”, released on December 22, BADRI said that the after-tax profit of the eight listed Omani insurance companies surged by 935%, shifting to a profit of OMR28.4 million (USD 73.9 million) in the first three quarters of this year (Q3 2025), registering a stunning turnaround from a loss of OMR3.4 million in the same period in 2024.
“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 Q3 2025, 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,” the study stated.
At the same point in time, conventional insurers achieved a 13% revenue increase, with the cumulative figure rising to OMR472 million in Q3 2025 from OMR417 million in the corresponding period in 2024. LIVA drove this growth by posting a 24% increase and maintaining the largest market share.
“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 OMR55.0 million in Q3 2024 to OMR55.1 million in Q3 2025. Notably, takaful insurers implemented IFRS 17 during the year, aligning their financial reporting with broader industry standards,” remarked the BADRI study.
Insurance service results for the analysed listed companies surged by 3,452%, rising from OMR0.8 million to OMR29.5 million, mainly due to LIVA’s operational turnaround. Excluding that, the overall increase would be 19% over the Q3 2024 figures.
Predicting the road for the Gulf country’s insurance sector, BADRI concluded, “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.”