Oman Re's net profit increased by 153% to reach OMR 298k ($774k) for 1Q2020 compared to OMR118k for 1Q2019, says the reinsurer in a statement.
The company's GWP increased by 11% to reach 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.
Commenting on the company's performance, Mr Romel Tabaja, Oman Re’s CEO, 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 COVID-19 pandemic impact 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.”
He added, “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.”
Oman Re is the first reinsurance company to be established in Oman with the purpose of writing Facultative and Treaty business from local and international markets, which include all Afro-Asian countries. It writes marine and non-marine lines of business. Oman Re was incorporated in July 2009 with a paidup capital of OMR5m that was gradually increased to OMR30m over the years.