Oman: Reinsurer's pre-tax profit jumps by 53% in 1Q
Source: Middle East Insurance Review | Jul 2021
Oman Re’s profit before tax increased by 53% to reach OMR458,000 ($1.2m) for 1Q2021 compared to OMR298,000 for the corresponding quarter in 2020.
The reinsurer’s GWP grew by 12% to OMR12.4m in 1Q2021, compared to OMR11.1m for the corresponding period in 2020.
The robust growth in profit is due to buoyant underwriting results as well as the strong performance of the investment portfolio, said Oman Re. Net underwriting profit increased by OMR128,000 to reach OMR157,000 for the first quarter. The improvement is on account of a reduction in the combined ratio by three percentage points to 95.9% for the first quarter. Investment income improved by OMR37,000 to OMR562,000.
“We have had a good start and our results for the first quarter of 2021 demonstrate Oman Re’s continued resilience amidst challenging circumstances. Our performance exceeded forecasts and we have also noticed improvements in prices and conditions within the regional reinsurance market,” said Oman Re CEO Romel Tabaja.
Referring to the impact of COVID-19 on the global economy and community, he said, “We remain focused towards continuing our support to our clients and partners based on our strong balance sheet and prudent risk management practices.” M