Oman Re, the first and only reinsurance company established in the Sultanate of Oman, has reported a net profit of OMR286.9K ($745.2K) for 1H2019, a 110% rise compared to the corresponding period last year (1H2018: OMR136.5K).
The very strong and improved performance of investment income for the period (OMR683.2K vs. OMR 405.2K) was the main factor contributing to overall profitability. Moreover, net profit improved on a quarterly basis with OMR168.9K reported for 2Q2019 against OMR118.0K for 1Q2019, the reinsurer says in a statement.
The company achieved GWP of OMR13.5m for the six months ended 30 June 2019 (1H1 2018: OMR15.1m).
Due to lower premium volume and certain market losses, the combined ratio increased by 2.1 percentage points to 104.5% (1H2018: 102.4%). With July and August renewals now concluded, Oman Re is confident to achieve full-year topline budget.
At the same time, the company reiterates that it was assigned a ‘BBB-‘rating with stable outlook by Fitch Ratings in June this year. According to an official statement released by Fitch Ratings at the time, key rating drivers for Oman Re were its “good financial performance, capitalisation and reserving adequacy”.
Commenting on Oman Re results for the first half of 2019, CEO Romel Tabaja said, “As a company, we are satisfied with our financial performance for the first six months of the year. In particular, the result of strategic changes to the investment portfolio is clear, with significant improvements demonstrated in that part of the business”.
Oman Re writes Facultative and Treaty business from local and international markets, which include all Afro-Asian countries. It also writes marine and non-marine lines of business. Oman Re was incorporated in July 2009 with a paid-up capital of OMR5m that has been gradually increased to OMR30m.