Oman: Reinsurer's 1Q financial performance exceeds expectations
Source: Middle East Insurance Review | Jun 2020
Oman Re’s net profit increased by 153% to OMR298k ($775k) for 1Q2020 compared to OMR118k for 1Q2019, said the reinsurer in a statement.
The company’s GWP grew by 11% to OMR11.1m in the first three months of 2020, compared to OMR9.9m in the corresponding quarter in 2019.
The growth in net profit is due to buoyant underwriting results as well as strong investment performance. The underwriting results improved by OMR109k in 1Q compared to the same period last year. The combined ratio decreased by 5.5 percentage points to 98.9% (1Q2019: 104.4%). In addition, investment income increased by OMR228k to OMR0.5m during 1Q2020.
Oman Re CEO Romel Tabaja said, “During the first quarter of 2020, we achieved results that exceeded our expectations both in underwriting and investment income. However, we are mindful of the impact COVID-19 pandemic has on the economy in general and the insurance industry in particular. Our current focus is to weather this situation and remain a strong partner to our clients.
“The ongoing challenging circumstances reinforce our determination to continue working towards Oman Re’s vision to provide reinsurance protection beyond expectations. We will continue to maintain our strong balance sheet, high liquidity and prudent risk management during these difficult times.” M
OMR1 = $2.60