PwC predicts a “new order” of Middle East insurers over the coming years

PwC predicts that the rankings of the Middle East’s insurers could be reshuffled over the coming years, with strategic M&A presenting opportunities for the Middle East’s leading insurers to achieve a step-change in their share of the market. 

These are the conclusions of PwC’s recent analysis of the Middle East’s major insurance markets, which identified continued fragmentation in the market, and a hardening stance by insurance regulators on solvency and compliance issues. 

Raymond Hurley, Director responsible for FS Deals in PwC Middle East commented: “Investors in the insurance sector will favour insurers with credible and scalable growth platforms. They are tiring of successive capital-raising driven by the need to maintain solvency buffers on past underwriting losses. Demonstrating a track record of profitable growth, as well as for focused and well executed M&A will become the hallmark of leading insurance companies in the Middle East.” 

PwC’s Point of View paper  titled "Fortune favours the brave - Early acquirers will shape the future Middle East insurance market", gives a perspective on how the core GCC insurance markets are about to undergo a series of deals that will bring about the long predicted consolidation in the sector, and also gives some background and insights on: 

1. The reasons for the slow progress in insurance deals in the region so far.

2. Factors that might stimulate the pace of M&A deals in the sector.

3. The role of the regulators in supervising and fostering the consolidation.