Oman Re, the Sultanate's sole reinsurer, has reported a 17% increase in reinsurance revenue for the first half of 2024.
The company achieved OMR 24.5 million (US$63.7 million), up from OMR 21.0 million (US$54.6 million) in the same period last year. The net profit after tax for this period was OMR 1.1 million (US$2.8 million), compared to OMR 1.2 million (US$3.2 million) in the first half of 2023.
The net reinsurance results were impacted by heightened natural catastrophe activity in key markets, with the figure standing at OMR 354,000 (US$920,000) versus OMR 1.3 million (US$3.5 million) in H1 2023. The combined ratio reached 98.2% during the first half of 2024.
The company also saw a 31% increase in net investment and other income, reaching OMR 1.6 million (US$4.2 million) compared to OMR 1.2 million (US$3.2 million) in the same period last year. As of June 30, 2024, Oman Re's net equity grew to OMR 33.5 million ($87.2 million), a 4% increase since December 2023, indicating financial stability.
CEO Romel Tabaja (pictured above) noted that despite the growth, the company saw significant natural catastrophe events, particularly the UAE flood losses in the second quarter, impacting the net reinsurance results.
“Significant NAT CAT events during the second quarter, mainly the UAE flood losses, have impacted the company’s net reinsurance results by OMR 2 million (USD 5.2 million),” Tabaja said. “In the meantime, our prudent investment strategies and favorable interest rates have boosted invested assets. With underlying conditions for the reinsurance business remaining strong, our effective management of operating expenses and underwriting discipline affirm our confidence in capitalizing on opportunities and achieving this year's targets.”
In June, Fitch Ratings affirmed the insurer financial strength (IFS) Rating of Oman Re at “BBB-.” The outlook remains stable, the credit agency noted.
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