Oman: Listed insurers report 56% increase in combined profit in 1H
Source: Middle East Insurance Review | Nov 2020
The performance of the insurance industry in Oman in the first half of the year has been fairly robust in the face of the ongoing coronavirus pandemic, said a report published by Badri Management Consultancy.
The sultanate’s 10 listed insurers have in aggregate registered OMR25m ($65m) in profit in the first half of 2020, a 56% increase over OMR16m for the corresponding period of the past year. GWP during the same period fell by 4% to OMR218m as a result of a drop in non-life and life businesses by 5% and 3%, respectively, according to the report.
The top five insurers, in terms of GWP, controlled around OMR160m or 74% of the market. National Life and General Insurance Company (NLGI) is Oman’s largest insurer, commanding around 40% market share in 1H2020, with 89% of its business generated from health and life insurance. The company also produced OMR12.6m in profit or half of the listed companies’ aggregate profit.
The two listed takaful operators in Oman, Al Madina and Oman Takaful, together commanded 13% of the overall market’s premium income in 1H2020 or around OMR28m, up from 12% in 1H2019.
The report said investment income has contributed to profits for the listed Omani insurers – except for Oman Qatar Insurance which saw an investment loss. Overall three players have investment income higher than their underwriting profits. The profit margin of the insurance industry in Oman stood at around 23% in 1H2020.
Return on equity for listed insurers reached 15% while the cash ratio stood at 65%, “which indicates very high liquidity for the market as a whole”, said the report. Insurance receivables for the listed insurers reached 41% for the first half of the year. M
OMR1 = $2.60