Oman: Dhofar Insurance to undertake financial restructuring
Source: Middle East Insurance Review | Feb 2018
Dhofar Insurance has announced that it had received a letter from the Capital Market Authority (CMA) instructing the company to suspend some activities effective from January 2018 until its solvency margin deficit is resolved.
An emergency meeting of major shareholders was held to discuss the financial position of Dhofar Insurance, reported Muscat Daily.
“The major shareholders expressed their full and immediate commitment to support the company by injecting necessary funds to restructure the company’s capital and to resolve the solvency margin deficit in compliance with the CMA letter,” Dhofar Insurance said in a statement lodged with the Muscat Securities Market in December.
Dhofar Insurance’s board has instructed the company to complete the formalities for convening a second extraordinary general meeting to discuss and approve a proposed financial restructuring.
The insurer reported a 21% decline in GWP for the nine months ended 30 September 2017 to OMR36.03 million (US$93.7 million), compared with OMR45.63 million in the same period of 2016. It also reported a net loss of OMR794,635 for the first nine months of 2017, compared with a net loss of OMR6.47 million in the same period of 2016. M
OMR1 = US$2.60