Oman Re's profit before tax increased by 53% to reach OMR458,000 ($1.2m) for 1Q2021 compared to OMR298,000 for the corresponding quarter in 2020.
The reinsurer's Gross Written Premium (GWP) increased by 12% to OMR12.4m in 1Q2021, compared to OMR11.1m for the corresponding period in 2020.
The robust growth in profit is due to buoyant underwriting results as well as the strong performance of the investment portfolio, the reinsurer says in a statement. Net underwriting profit increased by OMR128,000 to reach OMR157,000 for the first quarter. The improvement is on account of a reduction in the combined ratio by three percentage points to 95.9% for the first quarter. Investment income improved by OMR37,000 to OMR562,000.
Oman Re’s net equity stood at OMR25.9m as at 31 March 2021.
The company’s CEO, Mr Romel Tabaja, said: “We have had a good start and our results for the first quarter of 2021 demonstrate Oman Re’s continued resilience amidst challenging circumstances. Our performance exceeded forecasts and we have also noticed improvements in prices and conditions within the regional reinsurance market.”
Referring to the impact of COVID-19 on the global economy and community, he also said, “At Oman Re, we remain focused towards continuing our support to our clients and partners based on our strong balance sheet and prudent risk management practices.”
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. The company writes marine and non-marine lines of business. Oman Re commenced operations in July 2009 with a paid-up capital of OMR5m. The amount of capital has been increased gradually to the current level of OMR30m.