Oman Re, the sole reinsurer in the Sultanate of Oman, has reported a significant increase in its net profit after tax for the first quarter of 2024, recording OMR977,000 (US$2.5 million).
This figure represents an 83% rise from OMR534,000 (US$1.4 million) during the same period in the previous year. According to insights from Moody's, this growth has been fueled by a strong underwriting performance and a robust investment portfolio, with reinsurance revenue for Q1 2024 maintaining at OMR10.1 million (US$26.3 million), consistent with the first quarter of 2023.
The company has experienced a 41% increase in net reinsurance results, totaling OMR874,000 (US$2.3 million) for Q1 2024, up from OMR618,000 (US$1.6 million) in Q1 2023. Additionally, Oman Re reported a 0.7 percentage point improvement in its combined ratio, which now stands at 89.5% for the first quarter of the year.
Oman Re's financial performance was also bolstered by its investment activities. The company's prudent investment strategies and favorable interest rates contributed to a 23% increase in net investment and other income, which amounted to OMR775,000 (US$2.0 million) for Q1 2024, compared to OMR628,000 (US$1.6 million) recorded during the same period last year.
As of March 31, 2024, Oman Re’s net equity reached OMR33.5 million (US$87.2 million), marking a 4% growth since December 2023.
Romel Tabaja, CEO of Oman Re, commented on the company's performance and future outlook.
“We have made a strong start to the year, and amidst the challenges posed by the uncertain macroeconomic environment, we are focused on achieving our targeted reinsurance revenues of OMR45.7 million (US$118.7 million) and profit after tax target of OMR2.9 million (US$7.6 million) for the year. The exceptional performance in the first quarter positions us well to achieve our financial targets. Beyond financial success, Oman Re remains dedicated to creating value for stakeholders and fostering resilience in the communities we serve,” Tabaja said.
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