Oman Re, the Sultanate’s sole reinsurer, reported net profit of OMR 1.45m (USD 3.77m) for the year ended 31 December 2020, representing a 78% rise compared to previous year’s OMR 0.81m (USD 2.12m). The gross written premium increased by 21% to reach OMR 24.8m (USD 64.3m) against OMR 20.4m (USD 53.0m) during 2019, thus demonstrating a Compound Annual Growth Rate (CAGR) of 28% from year 2016 onwards.
The significant growth in profitability is driven by strong underwriting results and exceptional performance of the Company’s investment portfolio, which beat previous year’s figures as well as budgeted targets. The net underwriting results (before management expenses) for the year climbed momentously by 58% to reach OMR 1.96m (USD 5.1m) compared to previous year’s OMR 1.24m (USD 3.2m). The underwriting results reflect Oman Re’s prudent underwriting as demonstrated by substantial improvement in the combined ratio during the year which reached 97.9% against 101.7% for year 2019 despite incurring Beirut explosion as the major loss in August 2020.
Furthermore, the investment income grew by 25% during the year 2020 to reach OMR 1.9m (USD 4.9m) compared to prior year’s OMR 1.5m (USD 3.9m) based on proactive investment management as well as substantial cash generation. The Company’s net equity increased by 11% to OMR 25.6m (USD 66.5m), which is an improvement of OMR 2.5m (USD 6.6m) compared to December 2019 position.
The Company’s CEO, Romel Tabaja commented: “Oman Re faced multi-faceted challenges due to the COVID-19 pandemic but strongly responded with impeccable teamwork to produce solid business performance and increased our financial results, once again, exceeding our profit target. This clearly demonstrated our collective ability to stay resilient and successfully navigate through trying circumstances.”
He added, “Our strategic initiatives since the last four years are working and paying off. We stand confident to weather the prevailing situation and remain a strong partner to our valued clients. I also take this opportunity to thank all our stakeholders, including the Capital Market Authority, our Members of the Board, our shareholders, and our Business Partners for their continuous support.”
