Muscat: S&P Global Rating has reaffirmed the ‘A-’ Stable Outlook rating for Oman Insurance Company, acknowledging the strong creditworthiness of the leading listed insurer in the UAE, with capital adequacy above the ‘AAA’ level being robust and sufficient to support its business growth and diversification plans.
The company’s liquidity position remarkably improved to ‘exceptional’ from ‘very strong’ due to efforts made in de-risking the investment portfolio. Further, the company had drastically reduced its bank borrowings by year-end 2018, with all borrowings completely paid-off by the first half of 2019.
Oman Insurance Company provides a wide range of comprehensive insurance solutions for individuals and commercial clients in life, healthcare and general insurance. Oman Insurance has retained its UAE market-leading position with a gross premium written of AED3.7 billion in 2018. The company leverages its longstanding relations with prominent international insurers and reinsurers to support its business growth and diversification plans.
Welcoming the rating, Jean-Louis Laurent Josi, Chief Executive Officer at Oman Insurance commented saying, “In 2018, we have increased our solvency ratio to 214 per cent our highest solvency of the past years, which confirms our strong ability to meet our policyholders’ obligations. The strengthening of the solvency is notably the result of an efficient cash collection, resulting in a reduction of more than 50 per cent of the net receivables and an increase of the free cash flow of over AED400 million, de-risking investment portfolio, as well as reserves, strengthening. This trend is confirmed in 2019 and we have crossed the solvency ratio over 225 per cent. “
“We thank our valued customers, business partners, employees and shareholders for their relentless support that is key to all our successes,” he added.
In 2018 Oman Insurance implemented new accounting principles (IFRS 9) that allows implementing cautious and forward-looking provisioning. Additionally, the insurer has continued to implement leaner, cost-effective processes aligned to its digital strategies and a firm commitment to service excellence. Every initiative rolled out is shaped towards ultimately achieving the entity’s goal to become the preferred insurance choice and a reference in the region.