Oman Reinsurance Company (Oman Re)

Like many countries in the MENA region, the Omani market has henceforth its own reinsurance company. In 2009, local interests, including an insurance company Dhofar Insurance and businessmen joined hands with Trust Re (Bahrain) and Qatar General (Qatar) to establish Oman Re.

Unfortunately, back then, the economic context was hardly inciting for such risk taking. In 2009, the global market was still struggling in the financial crisis of 2008 and the numerous financial scandals like subprime or the bankruptcy of AIG which also occurred in 2008.

The gloomy economic context crippled the start of the new reinsurer which would be struggling to find its market. As often happens in times of crisis, the scarcity of premiums prompts investors to take excessive risks by accepting treaties and facultatives at degraded conditions. Newly established and in search of premium, Oman Re was not immune from this scenario of end of cycle. Its underwritings during the 2009-2011 period, mainly those pertaining to fire and marine classes of business were particularly unprofitable.

In 2013, contrary to expectations, initial results pushed shareholders to restructure the company and hire a new management team. Full review of the portfolio and an overhaul of procedures as well as premiums and claims ensued. This truth transaction that was completed in late 2014 gave way to a new underwriting policy. First sign of this renewal was the results for the first half 2015 that turned green.

Thanks to its strategic geographical location, today Oman Re is particularly targeting African markets and to a lesser extent those in Asia. In Africa, an area hardly exposed to major natural and man-made catastrophes, the experience of the current management team is a significant asset.

Abdullah Bin Zahran Al BalushiAbdallah Badaoui
Chairman of the boardCEO

Oman Re in 2014

Share capital
78 000 000 USD
Turnover
14 536 000 USD
Total assets
114 000 000 USD
Shareholder's equity
61 000 000 USD
Net loss
9 106 000 USD
Net loss ratio
169.8%
Number of employees
30

Board of directors and management

Chairman of the board
Abdullah Bin Zahran Al Balushi
CEO
Abdallah Badaoui
Corporate services chief officer
Ahmed Ibrahim
Finance manager
Sanjay Kampani
Senior underwriter
Krishna Moorthy
Underwriter
Malek Mechouet
Risk manager
Vijayabalan

Main shareholders

Trust Re
24.5%
Qatar General insurance & reinsurance Co.
24.5%
Omar Zawawi
15.5%
Zawawi Trading
9.5%
Ziliano Investment
10%

Main technical highlights: 2010-2014

in thousands USD
 20102011201220132014
Gross written premiums
16 91721 19718 37615 30814 536
Net earned premiums
6 48811 44611 2779 3146 847
Net incurred losses
-2 668- 6 695- 9 237- 8 330- 11 627
Management expenses
- 1 488- 1 587- 1 948- 2 029- 2 699
Net loss ratio
41.1%58.5%81.9%89.4%169.8%
Financial income
4885384031 5191 325
Net result
940145- 2 208- 3 148- 9106

Evolution of premiums, losses and results: 2010-2014

in thousands USD

Breakdown of turnover per class of business: 2010-2014

in thousands USD
 201020112012201320142014 shares
Fire
6 7129 0219 7047 3847 24249.8%
Motor
1 4912 4961 9481 4391 3849.5%
Engineering
3 8603 114  2 3092 2263 28622.6%
Marine
3 5223 4183 1092 2751 49910.3%
Others
1 3323  1481 3061 9841 1257.8%
Total
16 91721 19718 37615 30814 536100%

Breakdown of 2014 turnover per class of business

Net earned premiums per class of business: 2010-2014

in thousands USD
 20102011201220132014
Fire
1 8493 3193 7142 7792 208
Motor
9921 8752 1841 6131 358
Engineering
8836861 1581 145483
Marine
1 9513 3192 6472 2651 434
Others
8132 2471 5741 5121 364
Total
6 48811 44611 2779 3146 847

Net incurred losses per class of business: 2010-2014

in thousands USD
 20102011201220132014
Fire
-1 629-1 951-2 987-2 826- 4 481
Motor
-145-1 668-2 187-1 758- 1 294
Engineering
-119-348-886-1 668- 1 436
Marine
-704- 1 938- 2 125- 779- 2 130
Others
-71-790-1 052-1 299-2 286
Total
- 2 668- 6 695- 9 237- 8 330- 11 627

Net loss ratios per class of business: 2010-2014

 20102011201220132014
Fire
88.1%58.8%80.4%101.7%202.9%
Motor
14.6%88.9%100.1%109%95.2%
Engineering
13.5%50.8%76.5%145.6%297.3%
Marine
36.1%58.4%80.3%34.4%148.6%
Others
8.7%35.2%66.8%85.9%167.6%
Total
41.1%58.5%81.9%89.4%169.8%

Evolution of net loss ratios per class of business: 2010-2014

Source: Figures extracted from the different balance sheets of «Oman Re»

Oman Reinsurance Company
(Oman Re)

Head office
Coral Building, 6th floor– Al Khuwair, P.O. Box: 1968,
114, Muscat, Oman
Tel
+968 243 97 700-702
Fax
+968 243 97 777
E-mail
info [at] omanre [dot] com [dot] om, lamees [at] omanre [dot] com [dot] om
Website
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