Oman Re, the Sultanate’s first and only reinsurer, reported Gross Written Premium (GWP) of OMR 27.6m (USD 71.7m) for the year end 31 December 2021, representing a 11% rise compared to previous year’s OMR 24.8m (USD 64.3m), thus demonstrating a Compound Annual Growth Rate (CAGR) of 23.9% from year 2016 onwards. The Company posted profit after tax of OMR 1.3m (USD 3.5m) against OMR 1.4m (USD 3.8m) during year 2020.
The continued profitability is driven by strong underwriting results and exceptional performance of the Company’s investment portfolio. The net underwriting result for the year was OMR 2.1m (USD 5.3m) in comparison to OMR 1.9m (USD 5.1m) during 2020. These results reflect Oman Re’s prudent underwriting practices despite higher claim activity during the year.
The combined ratio for the year was 99.4% compared to 97.9% from last year. The increase in combined ratio is mainly driven by higher claim activity during the year including affect from Cyclone Shaheen. There was a net impact of OMR 0.7m (USD 1.8m) on the net profits due to Cyclone Shaheen.
Furthermore, the investment income grew by 12% during the year 2021 to reach OMR 2.1m (USD 5.5m) compared to prior year’s OMR 1.9m (USD 4.9m) based on proactive investment management as well as substantial cash generation. The Company’s net equity increased by 14.3% to reach OMR 29.3m (USD 76.0m), which is an improvement of OMR 3.7m (USD 9.5m) compared to December 2020 position. This improvement includes additional share capital issuance of OMR 2.6 m (USD 6.8m) during 2021.
The Company’s CEO, Romel Tabaja commented: “Oman Re stood tall in yet another year filled with challenges, continued pandemic as well as Cyclone Shaheen that wreaked havoc within the Sultanate. Our transformational journey had commenced five years ago and I’m glad to add that our strategic initiatives are paying off. Moreover, Fitch Ratings has revised the Outlook on the Company’s Insurer Financial Strength (IFS) Rating to ‘Stable’ in addition to affirming our IFS Rating at BB+.”
He added, “Our focus on prudent underwriting, meticulous investment management and top of it all, our customer-centric approach has helped us to remain resilient in these difficult times. Going forward, we remain committed to add value and enhance our business activity within all the markets where we operate."