1.1455197-2166809907
The UAE's insurance sector has come up with a solid set of results in a pandemic year. One of the biggest names in the business, Oman Insurance, proves the point. Image Credit: Gulf News Archive

Dubai: One of the UAE’s biggest names in its industry, Oman Insurance Co. improved on its net income, totaling Dh196.5 million for 2020 against Dh190.5 million a year ago. In fact, this is the company’s highest ever in the last five years as insurers managed to take the COVID-19 impact in their stride.

For OIC, a focus on “risks having the right pricing” and “non-compromise” on cash collection paid off. Another gain was made on cost control, with general and admin expenses dropping Dh8 million to Dh282.8 million.

“Our solvency margin has now reached its highest level in past years, approximately at 250 per cent, which confirms our extremely strong ability to meet policyholders’ obligations,” said Abdul Aziz Abdulla Al Ghurair, Chairman.

The company has recommended dividends of 10 per cent of share capital.

Dh100million

What Oman Insurance paid out as medical claim settlements during 2020

How key lines performed

Non-renewal of “certain large amounts” placed some pressure on gross written premium on life and medical insurance, dropping 9.1 per cent to Dh1.8 billion.

On general insurance lines, gross premium made a strong 14 per cent gain to Dh1.79 billion. “Strong claim management curtailed the net incurred claims to Dh328 million against Dh340.8 million in 2019,” OIC said in a statement.

OIC’s invested assets ended 2020 at Dh3.8 billion against Dh3.52 billion a year ago. The company recorded a free cash flow of Dh300 million plus, which was “partially utilized” for further investments.

Our last three years’ strategic focus on further strengthening the foundation has been achieved. Oman Insurance shall use these foundations for its next steps towards profitable growth, digital first and improving operating profitability

- Abdul Aziz Abdulla Al Ghurair, Chairman of Oman Insurance Co.