Oman Re, the sole reinsurer in the Sultanate of Oman, has reported net profit of OMR1.1m (2.8m) for the nine months ended 30 September 2020, representing a 51% rise compared to OMR725,000 for the corresponding period in 2019. Gross written premium increased by 25% to reach OMR21.8m in January-September 2010 against OMR17.5m for the same period in 2019.
The substantial growth in profitability is driven by prudent underwriting and investment income, the reinsurer says in a statement. The company’s net underwriting results for the nine month period improved by OMR175,000 to reach OMR211,000 for compared to the corresponding period in 2019. The combined ratio was reduced to 97.6% versus 99.4% for the same period last year, even though Oman Re incurred major losses including the Beirut Explosion during 2020. The underwriting results reflect the prudent strengthening in Incurred But Not Reported (IBNR) reserves by an additional OMR1.4m over the nine months.
Investment income grew strongly to reach OMR1.4m for the first three quarters of this year, exceeding both the budgeted target for the period and the previous year’s performance (January-September 2019: OMR1.1m).
Furthermore, the company’s net equity increased to OMR24.4m, which is an improvement of OMR1.3m compared to the position at 31 December 2019.
Commenting on Oman Re’s performance for the first three quarters of this year, CEO Romel Tabaja said, “Over the years, we have continuously demonstrated that we are committed to providing effective solutions to our clients and business partners in all our areas of operation. The robust growth validates the resilience of our business model and is also a fitting testimony of the collective efforts of our dynamic team.”
He continued, “The COVID-19 pandemic has amplified the importance of the insurance industry’s role in the economic optimism of businesses and individuals. At Oman Re, we are taking steps to benefit from the improved conditions for regional reinsurers and are fully determined to achieve our business targets for the year.”