Gross Direct Premiums increased by 3% to RO 134 million

04 June 2017

News

First Quarter 2017

Gross Direct Premiums increased by 3% to RO 134 million

 

The Omani insurance market continued recording reasonable  growth rates compared to the economic situation despite the financial measures taken to mitigate the impact of the falling oil prices which had impact on the projects executed by the Government and activities of the private sector.

 

Unaudited financial data  of the first quarter suggests  increase in the growth of gross insurance premiums by 3% at RO 3.85 million to reach RO 134.7 million compared to RO 131 million in the same period in 2016.

 

The increase in insurance premiums was spurred by positive turnout for individual life insurance products and health insurance in addition to other insurance products which increased by 15%. Individual life insurance  topped all products during the first quarter of 2017 at 30% continuing a growth process which was started in 2016 because the borrowers of bank loans were given the option to buy their own cover and were not obligated to take part in the collective cover schemes provided by the banks.

 

Health insurance  recorded good rates of growth in the first quarter up to 26% compared to 2016 which is indication of increased awareness of the benefits of health insurance and the endeavors of individuals and institutions to obtain better standards of health care.

 

On the other hand engineering insurance products witnessed improvement in the first quarter  at 3% compared to the previous year. This insurance is related to projects and the risks of contractors.

 

The unaudited statements of the first quarter shows decrease in the transport and liability insurance, motor comprehensive insurance and life group insurance by 33%, 31%, 11%, 9% and 3% consecutively. All such products were affected by the reduction in government expenditure.

 

Net Insurance Premiums

 

The ratios of gross direct insurance premiums for the first quarter of 2017 reflected positively on the net insurance premiums in 2017 at 5% compared to the same term in 2016.

 

Transport and engineering insurance recorded the highest ratios increasing by 98% and 58% consecutively compared to the same term in 2016.  Group life, properties, motor comprehensive, other and liability recorded a decrease at 28%, 21.6%,11%, 10.6% and 2% consecutively.

 

Retention

 


The retention ratio of the sector is about 57%. The table shows that retention ratio for properties and transport was the lowest compared to other types of insurance which were 13.7 and 18.5 consecutively due to reinsurance of the largest part of the risk with reinsurers.

 

Retention ratio for motor insurance (comprehensive and third party) was the highest  at 87.7% for third party and 84.8% for comprehensive insurance.

 

Operation Results

 

Earned   premiums during the first quarter of 2017 were 2% compared to the same period in 2016 at RO 68.11million compared to 2016. Total indemnities decreased to  RO47.43 million in the first quarter of 2017 compared to 2016.

 

Net commissions in the first quarter of 2017 and 2016 were almost the same at RO 6.69 million. Production costs in the first quarter of 2017 increased to RO 14.23 million in  2017 compared to RO 13.74 million in 2016.


Disclaimer | WebMaster
Copyright © 2017 , Capital Market Authority