Oman Re, the sole reinsurer in the Sultanate of Oman, announced a 17% increase in reinsurance revenues for the first half of 2024.

The company achieved profits of OMR 24.5 million (US$ 63.7 million) compared to OMR 21 million (US$ 54.6 million) in the same period last year. Net profit after tax for the period amounted to OMR 1.1 million (US$ 2.8 million) compared to OMR 1.2 million (US$ 3.2 million) in the first half of 2023.

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Net reinsurance results were impacted by increased natural catastrophe activity in key markets, with the figure reaching OMR 354,000 (USD 920,000) compared to OMR 1.3 million (USD 3.5 million) in H1 2023. The combined ratio stood at 98.2% in H1 2024.

The company also witnessed 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 (US$ 87.2 million), an increase of 4% since December 2023, indicating financial stability.

CEO Rommel Tabaja (pictured above) noted that despite the growth, the company experienced significant natural catastrophe events, particularly flood losses in the UAE in the second quarter, which impacted net reinsurance results.

“The significant events in the region during the second quarter, particularly the flood losses in the UAE, impacted the company’s net reinsurance results by approximately OMR 2 million (USD 5.2 million). At the same time, our prudent investment strategies and favorable interest rates strengthened invested assets. With the fundamentals of the reinsurance business remaining strong, our effective management of operating expenses and underwriting discipline confirm our confidence in capitalizing on opportunities and achieving this year’s targets,” said Tabaja.

Last June, Fitch Ratings affirmed Oman Re’s financial strength rating at “BBB-”. The agency indicated that the outlook remains stable.

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