Arabia Falcon Insurance SAOG (AFIC) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. My name is Fayez Mufti and I welcome you all to the analyst briefing for Arabia Falcon Insurance for the First Half 2025. I'll start with the presentation. And after the presentation, I will hand it over -- open the floor for any questions that you have.

Good afternoon, everyone, and welcome to the first half of 2025 briefing of our financial results. My name is Ahmad Al Tayeb, I'm Chief Financial Officer. And with me here, Fayez Mufti, the Investment and Financial Planning Manager. And he will be presenting the results right now. And later on, we'll open the floor for any questions from the attendees. Please feel free to ask any questions after we finish the presentation.

Thank you, Ahmad. So for the first half 2025, our gross written premiums increased by 5%, and we touched the mark of OMR 17 million in gross written premiums. We retain our market share of 5% this year as well. And basically, our growth in written premiums is mainly coming from our life insurance business. Our life insurance business is being run by our individual teams, and we have bancassurance arrangements with multiple banks. Our profitability after tax was recorded as OMR 1.05 million versus last year of OMR 800,000. This is an increase of more than 20% compared to last year. Our EPS for this year clocked in at OMR 0.010, which is technically 10 baisas. Our total equity grew by 5%. Our total assets grew by 18%, and correspondingly, liabilities grew by 25%. Our operating expense ratio fell to 9% from 11% previously. I'll be taking you along these figures and detailed numbers in the next slide. If I talk about my comprehensive income, our gross written premium has grown year-on-year. If I see 2023 versus 2024 and 2025, we've seen growth over the last 2 years. The growth was 5% this year compared to last year. Our insurance revenue has also grown by 8% and our profit before tax has grown substantially by 28% this year compared to last year. This 28% growth in profit after tax is mainly coming from investment income, which has grown by 32%, and gross written premium increased by 5%. Our year-to-date return on equity is 4.8%, and this 4.8%, as I mentioned, was achieved by stellar growth in investment income and increase in our gross written premium. To break down our gross written premiums, in 2025, our Motor business saw a growth from OMR 2.4 million to OMR 2.5 million. Our Non-motor business fell from OMR 11.1 million to OMR 8 million. Our Life business grew substantially by OMR 2.5 million to OMR 6.4 million. These all 3 lines of business combined grew from OMR 16.1 million to OMR 17.0 million. Our Non-motor revenue fell down because of a nonrenewal of a mega account. However, this was compensated by the stellar performance in our Life business, which has almost tripled compared to last year. Motor business, if you can see, was previously, in the last few years, had been in a negative trend. But this year, our Motor business has also grown, and we believe that this is a trend that we will foresee in the future quarters as well. About our balance sheet, our balance sheet has grown. If I talk about my total assets, my total assets have grown by approximately 25% -- sorry, my total assets have grown by 18%, my liabilities have grown by 25%, and my total equity has grown by 5%, which translates into a net assets per share of 210 baisas. To break down our total assets, our total assets are comprised in 3 main heads. The major one is investments, which have grown from OMR 37 million to OMR 47 million. It's a OMR 10 million increase. Our cash and bank balances has also grown and our insurance and reinsurance contracts are almost at the similar level. Breaking down our investments, which have grown by OMR 10 million. This is our breakdown of our investment assets over -- this is the last year, 2024, versus this is the current year 2025. We have maintained our deposits. We have grown our bond portfolio, and we've also grown our international equity, our money market funds substantially as well. In our bond portfolio, we have elongated our maturities and have increased our duration, which will give a benefit going forward as well, as interest rates are projected to be reduced worldwide. Coming to the overall market share. Our market share, we are the seventh in our market share. We have a business of OMR 17 million this year. And comparatively, the whole industry is at OMR 300.6 million. Liva is the largest player, followed by Dhofar, Oman Qatar Insurance, Takaful, Al Madina, Oman United, and us. If you see compared to 2023, we had a differential of OMR 10 million versus Oman United, which was reduced substantially last year. And this year also, we are maintaining that position. Hopefully, we may foresee ourselves as the sixth largest player going forward as well. The overall market has grown by 7%. So the market saw, in the last year, 2024, a fall versus 2023. But this year, the market has grown by 7%, which we believe will be continued as well in the next year. This concludes our small presentation. I would like to open the floor for any questions that you may have.

Fayez, can you go back to the slide of our P&L while waiting for attendees to raise their questions.

Yes.

Please feel free to ask any questions that come to your mind regarding the financial results or the operation of the company in the first half, and we'll be happy to answer.

If no one has a question, let's conclude this presentation, Ahmad, if you feel so?

Yes, we can conclude the presentation if there's no questions. So thank you, everyone. And for any information, we will post this presentation on the MSX website. If you come to have any question, feel free to e-mail us, to e-mail the Investor Relations Officer for any questions about this presentation or our financial results. You can find our financial results on the company website, and you can find it also on the MSX portal. Thank you, everyone, and have a great evening.

Thank you. Have a good evening. Bye-bye.