The Financial Services Authority (FSA) revealed that the insurance sector in the Sultanate of Oman recorded positive financial performance during 2025, reflecting the sector’s continued growth and enhanced ability to adapt to economic and operational changes. This was supported by improved investment returns, stable underwriting activity across various segments, as well as increasing reliance on digital solutions and the expansion of insurance services.

Audited financial statements of insurance companies showed that total insurance revenue increased to RO 501.6 million in 2025, compared to RO 483 million 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 insurance revenues rose to RO 404.2 million, compared to RO 389.5 million in 2024, representing growth of 3.78%. Foreign insurance companies also posted solid growth, with insurance revenues increasing by 4.19% to approximately RO 97.4 million, compared to RO 93.4 million 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 sector also recorded a 6.9% increase in total assets, reaching RO 1.31 billion in 2025. At the same time, investment income increased by 42.6% to RO 49 million, compared to RO 34.3 million in 2024, reflecting improved efficiency in the management of insurers’ investment portfolios and their enhanced ability to generate stronger returns.

In addition, the total net profit of insurance companies increased by 36% to approximately RO 34.3 million, compared to RO 25.2 million in 2024, supported by higher investment returns and improved operational performance among several companies. Insurance service results also reached approximately RO 11.7 million during 2025, despite variations in underwriting performance among companies depending on the composition of insurance portfolios, claims levels and operating costs. Higher investment returns and stronger risk management practices also supported the sector’s overall financial performance and helped maintain stable profitability levels.

Gross written premiums (GWPs) also recorded growth of 8.9%, reaching approximately RO 551.8 million compared to RO 506.6 million in 2024. This growth was driven by significant expansion in life and savings insurance business, which grew by 42%, in addition to a 6% increase in health insurance business. Meanwhile, total claims incurred declined from RO 279.4 million in 2024 to RO 267.8 million in 2025, representing a decrease of 4.1%. Loss ratios for both national and foreign insurers also improved compared to 2024, reflecting enhanced risk management practices and improved underwriting efficiency during 2025.

The sector also witnessed wider adoption of digital channels, with premiums generated through digital platforms increasing by 35.5%, while premiums generated through bancassurance channels rose 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 the Sultanate of Oman.

Meanwhile, the Takaful insurance segment maintained stable performance within the insurance market, with insurance revenues of Takaful operators increasing by 1.04% to approximately RO 75.35 million, compared to RO 74.57 million in 2024. Takaful revenues also represented 15% of total insurance sector revenues, underscoring the continued importance of Islamic insurance within the broader insurance industry.

These indicators confirm the continued development of the insurance sector in the Sultanate of Oman and its growing contribution to supporting the national economy, in addition to its role in providing financial protection to individuals and institutions, in line with regulatory developments, digital transformation and sustainable economic development goals.