Oman Re, the Sultanate’s sole reinsurance company, reported reinsurance revenue of OMR 37.4 million ($97.2 million) for the period ending Sept. 30, reflecting a 17% increase from OMR 31.8 million ($82.8 million) in the same period of the previous year.
The company’s net profit after tax was OMR 1.4 million ($3.7 million), a decline from OMR 1.9 million ($4.8 million) in the first nine months of 2023.
The reinsurer said that it faced impacts from natural catastrophe activity in key markets and a lower interest rate environment, which contributed to a decrease in net reinsurance results.
For the first nine months of 2024, Oman Re’s net reinsurance result stood at OMR 548,000 ($1.4 million), down from OMR 2.1 million ($5.4 million) during the same period in 2023. The company’s combined ratio for the period rose to 98.2%, compared to 91.1% in the prior year.
Oman Re’s net investment and other income for the first nine months of 2024 saw a 22% increase, reaching OMR 2.4 million ($6.3 million), up from OMR 2.0 million ($5.1 million) during the same period last year. The company’s net equity as of September 30, 2024, also showed a 9% increase, totaling OMR 35.0 million ($91.2 million), indicating a solidified financial position.
Romel Tabaja (pictured right), CEO of Oman Re, stated that despite challenges posed by natural catastrophe events, the company’s disciplined underwriting approach enabled it to maintain positive net reinsurance results through the third quarter.
“The decrease in the discount rate during the period led to a shift from finance income to finance expense for the underwriting results. However, with a strong capital position and favorable market conditions for reinsurance, we remain focused on meeting our annual targets and continuing to deliver value to our stakeholders,” Tabaja said.
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