One of the UAE's largest insurers, Oman Insurance, retained its positive business momentum as its net profit grew by 75% to AED105.6m ($28.8m) in 1H2019, as compared to AED60.2m for the same period last year. This growth is supported by strong underwriting results, increased investment income, accelerated collections and leaner operating expenses. The profit was the highest half yearly net profit over five years.
The company's solvency ratio now stands above 225%, more than double the minimum regulatory requirement of 100%.
While GWP was lower by 7% to AED2bn for 1H2019, this was driven by selective underwriting and pruning of loss-making accounts. The insurer is very focused on delivering sustainable profitability, says the company in a statement.
Acknowledging the achievements, Mr Jean-Louis Laurent Josi, CEO of Oman Insurance, commented, "Our half yearly results reflect our strategy to become a reference in the region. The company's solvency has indeed now reached a very healthy level over 225%, the strict risk selection and premium collection were translated in a very strong increase of the profits while our customer satisfaction scores have reached an all time high."
S&P Global Rating's recent assessment of 'A-' Stable Outlook rating for Oman Insurance, acknowledges the strong creditworthiness of the company, with a capital adequacy above the 'AAA' level being robust and sufficient to support its business growth and diversification plans. S&P Global Rating has improved Oman Insurance's liquidity position to 'exceptional' from 'very strong' due to efforts made in de-risking the investment portfolio. The insurer's overall financial risk profile moved to "very strong" from "strong".