Oman Re, the sole reinsurer operating in the Sultanate of Oman, has reported a net profit of OMR664,300 ($1.73m) for 1H2020, higher by 131.5% compared to OMR 286,900 during 1H2019, according to interim financial statements released by the company.
Gross Written Premium increased by 21.4% to reach at OMR16.4m in the first six months of this year, compared to OMR13.5m for the same period in 2019.
Enhanced underwriting results and robust performance of investment portfolio greatly contributed to overall profitability. The combined ratio reduced by 6.67% to reach at 97.84% (1H 2019: 104.51%) which improved underwriting results by OMR300,400 compared to same period last year. The strong underwriting results were augmented by a significantly higher investment income during 1H2020, which rose by 44.1% to reach OMR 937,200.
The company’s net equity stood at OMR23.9m at 30 June 2020, growing by 3.7% in comparison to the balance at 31 December 2019.
Oman Re’s CEO Romel Tabaja said, “Amidst the inherent uncertainty of the ongoing pandemic, Oman Re has demonstrated resilience via operational growth, overall profitability as well as increase in net equity position. Our business development has been encouraging, and we are looking forward to achieving our full year budgets. Also, we remain hopeful for the regional market conditions to improve for reinsurers.”
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, and it writes marine and non-marine lines of business. Oman Re was incorporated in July 2009 and currently has a paid-up capital of OMR30m.