Oman Re, the Sultanate of Oman's sole reinsurer, has reported a net profit after tax of OMR1.4m ($3.7m) for the first three quarters of this year, down from OMR1.9m for the first nine months of 2023.
Reinsurance revenue stood at OMR37.4m for the first three quarters of this year, representing a robust 17% growth year on year.
The company's Nat CAT activity in key markets along with a declining interest rate environment weighed on net reinsurance results, which totalled OMR548K for 9M2024, compared to OMR2.1m for the corresponding period in 2023.
The overall combined ratio stood at 98.2% for 9M2024 against 91.1% over the prior year’s comparable period.
The company saw a notable 22% rise in net investment and other income in the first nine months of 2024, reaching OMR2.4m, up from OMR2.0m during the corresponding period last year.
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Oman Re (OMR)
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Jan-Sep 2024
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Jan – Sep 2023
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%Change
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Reinsurance Revenue
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37,375,580
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31,825,722
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17.44
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Net Reinsurance Service Results
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1,822,978
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490,918
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271.34
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Net Reinsurance Results
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548,503
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2,062,403
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-73.40
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Investment Results
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2,413,873
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1,977,251
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22.08
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Net Profit (Loss), after zakat
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1,416,266
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1,856,475
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-23.71
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Shareholders’ Equity @ 30 Sep
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35,047,761
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32,208,913
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8.81
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As of 30 September 2024, the company’s net equity had grown by 9%, totalling OMR35.0m, further solidifying its financial strength.
Mr Romel Tabaja, CEO of Oman Re, said, “Despite recurrent natural catastrophe events, our disciplined underwriting approach has allowed us to maintain positive net reinsurance results for 9M2024. 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 favourable market conditions for reinsurance, we remain focused on meeting our annual targets and continuing to deliver value to our stakeholders."