Saudi Arabia: Amana Cooperative Insurance Company and Saudi Enaya Cooperative Insurance Company have agreed to merge.

Upon completion of the merger, Enaya’s assets and liabilities will be transferred to Amana, subject to shareholder and government approval, the pair said in separate stock exchange filings on Sunday.

Enaya’s shareholders will own 55 percent of the merged entity’s capital and Amana’s current shareholders will own 45 percent.

Fierce competition among the region’s bloated insurance sector is encouraging some industry players to combine.

“Ongoing high competition, a contraction in population of about 4 percent across the GCC on average, and economic uncertainty will weigh on growth prospects and earnings, while elevated asset risk could lead to further volatility in the coming quarters,” S&P said in a report on the regional insurance sector in February.