RIYADH: Insurers across the Gulf are expected to maintain stable credit profiles despite the ongoing Middle East war, with strong capital buffers helping absorb market volatility and limiting exposure to war-related claims, according to S&P Global Ratings.
In a report, the agency said most rated insurers in the Gulf Cooperation Council have sufficient financial strength to withstand near-term shocks because claims linked to the conflict are either heavily reinsured or excluded under standard policies.
The rating agency, however, warned that there could be a slowdown in revenue growth for most GCC insurance markets in 2026, following double-digit growth in recent years.
The analysis added that the extent of the slowdown will likely vary by market and depend on the duration of the war.
This comes after US-based credit rating agency AM Best said earlier in March that the immediate impact of the ongoing Middle East conflict remains manageable for global reinsurers, while warning that a prolonged crisis could challenge the sector’s resilience.
