Oman’s sole reinsurance firm has published its financial results for 2023 – how did it perform?
The company disclosed notable growth in reinsurance revenue, achieving OMR42.1 million (US$109.3 million) for the fiscal year ending December 31, 2023. This figure represents a 29% rise from the OMR32.5 million (US$84.5 million) recorded the previous year.
The company witnessed an increase in gross written premium (GWP) as defined by IFRS 4, reaching OMR46.2 million (US$119.8 million), up from OMR36.6 million (US$95.0 million) in the prior year. In addition, the firm’s net profit after tax grew by 20%, standing at OMR2.6 million (US$6.6 million), compared to OMR2.1 million (US$5.5 million) in 2022.
In spite of challenges posed by increased incidents of natural catastrophes, Oman Re reported a substantial 20% increase in net reinsurance results, amounting to OMR2.7 million (US$7.1 million) for 2023, up from OMR2.3 million (US$5.9 million) the year before. The firm’s combined ratio, inclusive of discount impact, remained steady at 91% in 2023, mirroring the figure from 2022.
Contributing to the financial uplift was Oman Re’s strategic approach to investment, which saw net investment and other income rise by 20% to OMR2.7 million (US$7.1 million), compared with OMR2.3 million (US$5.9 million) in the preceding year.
As the year closed on December 31, 2023, the company’s net equity had grown by 14% to OMR32.2 million (US$83.7 million), from OMR28.3 million (US$73.6 million) in 2022.
Romel Tabaja, CEO of Oman Re, shared insights on the year’s performance, stating that the previous year had proven to be exceptional, marked by strong results that underscored the reinsurer’s strengths.
“In the face of high natural catastrophe activity, this resilience is a testament to the prudent underwriting and robust risk management measures we have in place,” Tabaja said. “Our meticulous investment management not only shields us from market uncertainties but also propels our overall financial performance. The outcome, thus, is a commendable increase in net equity, emphasizing the company’s strength and stability. As we continue with our customer-centric approach, we are well-positioned for sustained success in the future.”
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