Saudi Arabia – Insurance mergers to limit losses
Wednesday, 06 14 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
A number of experts in the insurance sector in the Kingdom said that mergers and acquisitions are an inevitable solution to the large pressures on the profits of insurance companies despite the continuous growth in insurance premiums. There is a gap now between large insurers that are able to compete and attract customers and small insurers that try to remain in the market by manipulating prices.
The insurance expert Dr. Fahd Al Anazi said it is natural for insurance companies to move toward mergers and acquisitions in order to establish large entities, which can overcome the challenges of the insurance sector in the next period, indicating that such decisions aim at improving management practices and adopting a new governance system.
Moreover, Dr. Al Anazi indicated that the management factor is the most important in the decision to merger as it will help meet the targeted goals.
Source: Al Riyadh Newspaper