Oman Re, the Sultanate of Oman’s sole reinsurer reported Gross Written Premium (GWP) of OMR 18.9 million [USD 49.1 million] as of 31 March 2023, which is higher by 24.0% compared to OMR 15.3 million [USD 39.6 million] for the same period last year. However, in view of the massive Turkish earthquake of February 2023, the Company posted a loss after tax of OMR 426k (USD 1.1 million) against profit after tax of OMR 290k (USD 753k) during Q1 2022.
While the Company extends comprehensive focus on underwriting excellence and portfolio quality, the impact of this recent natural disaster affected led towards Net Underwriting Result of OMR -715k (USD -1.9 million) during the quarter, against OMR 215k (USD 559k) for the same period last year. Combined Ratio stood at 111.2% against 96.1% during Q1 2022. The Turkish Earthquake had an impact of 41.8% on the combined ratio.
Amidst these challenges, Oman Re’s investment portfolio demonstrated exceptional performance, whereby the Investment and Other Income reached OMR 628k (USD 1.6 million) during Q1 2023, which is 33.6% higher compared to OMR 470k (USD 1.2 million) for the same period last year. The Company’s Net Equity stood at OMR 29.1 million (USD 75.6 million) as at 31 March 2023.
The Company’s CEO, Romel Tabaja commented: “As we have embarked on our strategy to shape the future of Oman Re and have worked hard for a good start for the year, we also stood strongly alongside our partners in Turkey after the colossal 7.8 magnitude earthquake that struck south-central Turkey during Q1 2023 that led to huge loss of lives, injuries and damages to property thus having far-reaching consequences.”
He added, “We remain focused on addressing the challenges proactively and maintaining our strong capital position. Such strategic initiatives have enabled us to take advantage of the improvements within the regional reinsurance market apart from proactive investment management towards our continued overall growth.”