In recent years, mergers and acquisitions have reshaped many sectors, with the insurance industry in Saudi Arabia being no exception. This study examines the influence of mergers on the stock performance of Saudi Arabian insurance companies by utilizing the Event Study Methodology. Five distinct merger cases serve as the focal point of the analysis. Both daily abnormal returns (AR) and cumulative abnormal returns (CAR) during different time frames are scrutinized. While the daily AR data showcased a spectrum of immediate investor reactions, some showing optimism and others indicating apprehension, the long-term CAR evaluation provided a more nuanced view. When assessed over a 180-day period post-merger, results revealed a complex landscape of stock performance outcomes. Some companies witnessed significant stock price appreciations, while others experienced marked declines. This variance underscores the multifaceted impacts of mergers on stock prices within the Saudi insurance sector. The observed outcomes can be attributed to market anticipations, internal corporate strategies, and broader economic factors. These findings provide crucial insights for investors, policymakers, and companies contemplating mergers, emphasizing the necessity of a comprehensive and context-specific assessment. Moreover, the study's results contribute significantly to the existing literature, offering a detailed perspective on merger impacts in emerging markets, particularly in the unique economic landscape of Saudi Arabia.