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Insurance investments increase by 2.8 percent in Q1 of 2020

1 Jun 2020

Unaudited financial data of the insurance sector for the first quarter of 2020 revealed that total investments of insurance companies were about RO686.5mn, increasing by 2.8% compared to the first quarter of the previous year. National insurance companies recorded  RO529.6mn and foreign insurance companies recorded RO257.2mn.

The data shows that investments of national insurance companies  were concentrated in the sultanate at 90% while investments of foreign insurance companies were about 10% and they invested 82% inside the sultanate in cash instruments, bank deposits, government and corporate bonds.Investments of foreign insurance companies abroad were 18%.

The data indicates that cash instruments, bank deposits, listed bonds and shares and real estate were the majority of the investments. Cash instruments and bank deposits were RO278.5mn at 64.8% of the total investments of national insurance companies and RO162.8mn at 63.3% of the total investments of foreign insurance companies.

The data showed that total investments inside the sultanate  increased in the first quarter of 2020 by 1% compared to the previous year. Investments in investment funds, government and corporate bonds increased the by 59.4%, 32.2% and 13.8% respectively compared to the first quarter of 2019. Investments in listed shares and loans guaranteed by life insurance, cash and bank deposits have decreased.

Investments abroad decreasedby 4.5% in the first quarter of 2020 compared to the previous year. Investments in cash, bank deposits and life guaranteed loans were the highest investment schemes at 94% and 2.1% respectively while other investment schemesdecreased by 1.3% and 35.5%.

Dhofar Insurance  has the biggest share in the investments in the first quarter with total investments at RO74.467mn followed by Axa Insurance with total investments at RO69.486mn and Oman United Insurance in the third place with total investments RO 63.287mn followed by National Life and General Insurance with total investments RO56.027mn. It is noteworthy that these four insurers have 38% of the total investments in the sector in the first quarter of 2020.

Investments of national insurance companies were concentrated  in cash and bank deposits. The data shows that national insurance companies have invested in cash and bank deposits about 64.8% of their total investments inside the sultanate and abroad.  Al Ahilya Insurance was the biggest investor in cash and bank deposits at 94% of its total investments while National Life and General Insurance had the lowest investments in cash and bank deposits among the national insurance companies, at 36% of its total investments.

Foreign insurance companies invested 63.3% of their investments inside the sultanate and abroad in cash and bank deposits schemes. Orient Insurance and Iranian Insurance invested 100% of their investments in these schemes while Life Insurance had the lowest investments in these scheme at 40%.

The number of insurance companies operating in Oman at the end of the first quarter of 2020 was 20, comprising 10 national and 10 foreign companies, in addition to one reinsurance company – Oman Reinsurance. The number of national and foreign insurance companies licensed to carry out life insurance was 15 while 19 companies were carrying out general insurance and 14 companies were carrying out life and general insurance.

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