Investments of insurance companies in Oman rise by 2.8%

Muscat: Unaudited financial data of the insurance sector for the first quarter of 2020 revealed that total investments of insurance companies were about OMR686.5 million increasing by 2.8 per cent compared to the first quarter of the previous year. National insurance companies recorded OMR529.6 million and foreign insurance companies OMR257.2 million.
The data shows that investments of national insurance companies were concentrated in the Sultanate at 90 per cent while investments of foreign insurance companies were about 10 per cent and they invested 82 per cent inside the Sultanate in cash instruments, bank deposits, government and corporate bonds. Investments of foreign insurance companies abroad were 18 per cent.
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 OMR278.5 million at 64.8 per cent of the total investments of national insurance companies and OMR162.8 million at 63.3 per cent 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 per cent compared to the previous year. Investments in investment funds, government and corporate bonds increased by 59.4 per cent, 32.2 per cent and 13.8 per cent consecutively 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 decrease in the first quarter of 2020 compared to the previous year by 4.5 per cent. Investments in cash, bank deposits and life guaranteed loans were the highest investment schemes at 94 per cent and 2.1 per cent consecutively while other investment schemes have decreased by 1.3 per cent and 35.5 per cent.
Dhofar Insurance has the biggest share in the investments in the first quarter with total investments at OMR74.467 million followed by Axa Insurance with total investments at OMR69.486 million and Oman United Insurance in the third place with total investments OMR63.287 million followed by National Life and General Insurance with total investments OMR56.027 million. It is noteworthy that these four insurers have 38 per cent 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 per cent of their total investments inside the Sultanate and abroad. Al Ahilya Insurance was the biggest investor in cash and bank deposits at 94 per cent of its total investments while National Life and General Insurance have the lowest investments in cash and bank deposits among the national insurance companies at 36 per cent of its total investments. Foreign insurance companies invested 63.3 per cent of their investments inside the Sultanate and abroad in cash and bank deposits schemes. Orient Insurance and Iranian Insurance invested 100 per cent of their investments in these schemes while Life Insurance had the lowest investments in these schemes at 40 per cent.
The number of insurance companies operating in Oman at the end of the first quarter of 2020 was 20 insurance companies comprising 10 national and 10 foreign companies in addition to one reinsurance company i.e. Oman Reinsurance. The number of national and foreign insurance companies licensed to carry out life insurance is 15 companies and 19 companies are carrying out general insurance and 14 companies carrying out life and general insurance.