Muscat – Oman’s insurance industry recorded gross written premiums of RO551.8mn in 2025, marking an 8.9% increase compared with RO506.6mn in the previous year, according to data released by the Financial Services Authority (FSA).

The growth in total premiums was driven by significant expansion in the life and savings insurance segment, which grew by 42%, in addition to a 6% increase in health insurance business, the data showed.

Meanwhile, total claims incurred by the sultanate’s insurance industry declined by 4.1% year-on-year, from RO279.4mn in 2024 to RO267.8mn in 2025.

Loss ratios for both national and foreign insurers also improved compared with 2024, reflecting enhanced risk management practices and improved underwriting efficiency during 2025.

Oman’s insurance sector also witnessed wider adoption of digital channels last year, with premiums generated through digital platforms rising by 35.5%, while premiums generated through bancassurance channels surged by 38.1%.

This highlights the accelerating pace of digital transformation and growing customer preference for digital insurance services, contributing to broader access to insurance services in Oman.

The FSA said the insurance sector recorded positive financial performance during 2025, reflecting the sector’s continued growth and its enhanced ability to adapt to economic and operational changes. This was supported by improved investment returns, stable underwriting activity across various segments, increasing reliance on digital solutions, and the expansion of insurance services.

Revenues cross RO500mn mark

Audited financial statements of insurance companies showed that total insurance revenue in Oman increased to RO501.6mn in 2025, compared with RO483mn in 2024, representing growth of 3.86%. The increase reflects continued expansion in insurance activity and stronger demand for insurance products and services.

The growth was mainly driven by the strong performance of national insurance companies, whose revenues rose to RO404.2mn from RO389.5mn in 2024, representing growth of 3.78%.

Foreign insurance companies also posted solid growth, with insurance revenues increasing by 4.19% to approximately RO97.4mn, compared with RO93.4mn in the previous year.

The results underscore the continued strength and attractiveness of the Omani insurance market, supported by a diverse range of insurance products and growing awareness among individuals and businesses of the importance of insurance coverage, the FSA said.

The sector also recorded a 6.9% increase in total assets, which reached RO1.31bn in 2025.

At the same time, investment income rose by 42.6% to RO49mn, compared with RO34.3mn in 2024, reflecting improved efficiency in the management of insurers’ investment portfolios and their enhanced ability to generate stronger returns.

The total net profit of insurance companies increased by 36% to approximately RO34.3mn, compared with RO25.2mn in 2024, supported by higher investment returns and improved operational performance across several companies.

Higher investment returns and stronger risk management practices also supported the sector’s overall financial performance and helped maintain stable profitability levels.

Meanwhile, the takaful insurance segment maintained stable performance within the insurance market, with revenues of takaful operators increasing by 1.04% to approximately RO75.35mn, compared with RO74.57mn in 2024. Takaful revenues also accounted for 15% of total insurance sector revenues, underscoring the continued importance of Islamic insurance within the broader insurance industry.

The indicators confirm the continued development of Oman’s insurance sector and its growing contribution to supporting the national economy, in addition to its role in providing financial protection to individuals and institutions.