MENA reinsurers target profitable growth amid geopolitical and economic uncertainty

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MENA reinsurers pursue growth

Highlights

MENA reinsurers remain focused on profitable growth opportunities amid geopolitical and economic uncertainty, supported by adequate pricing and emerging specialised business lines.
Closing the protection gap drives demand for new products like cyber insurance, parametric insurance, and retakaful, expanding opportunities for reinsurers in the region.
International reinsurers are attracted to the Middle East and North Africa as demand for underserved risks grows, supporting broader offerings and more sustainable returns.

Report highlights growth drivers in MENA reinsurance

As reported by AM Best, a new market segment report says MENA reinsurers remain focused on profitable growth opportunities despite heightened geopolitical and economic uncertainty. The ratings agency says adequate reinsurance pricing and emerging business lines, especially in specialised risks, continue to support the region's growth outlook.

Fleur Ngassa, a financial analyst at AM Best and one of the report's authors, says growth opportunities have emerged for reinsurers in the region despite the uncertain environment. She says closing the protection gap remains a key priority in MENA markets, driving the development of products such as cyber insurance, parametric insurance and retakaful.

Specialised risks draw industry attention

The report indicates that the Middle East and North Africa continue to attract international interest as reinsurers look for business with stronger underwriting discipline and room for expansion. Demand linked to underserved risks is creating openings for insurers and reinsurers to broaden their offerings while seeking more sustainable returns.

The study is part of AM Best's wider review of the global reinsurance industry, which also includes rankings of leading global reinsurance groups and analysis of insurance-linked securities, Lloyd's, life and annuity, health, and regional reinsurance markets. AM Best also points audiences to related conference coverage and executive interviews recorded during Rendez-Vous de September in Monte Carlo.

Our earlier coverage on the Middle East energy shock examined how elevated oil and diesel prices, fueled by geopolitical tensions and sanctions uncertainty, were keeping inflation risks in focus for investors. It also noted that persistent inflation, rising sovereign debt burdens, and higher borrowing costs were expected to dominate discussions around the IMF and World Bank meetings, even as parts of the global economy stayed relatively resilient.

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