Dhofar Insurance Company SAOG (DICS) Earnings Call Transcript & Summary

[Foreign Language]

Thank you very much all the participants for joining us today for our interaction for the results of Dhofar Insurance for the year ending 31st December 2024. We have a presentation. I hope you are able to see this. Can you see the presentation, first page on your screen?

Hello. Can anyone confirm it whether you are able to see our presentation?

Anybody hear us?

Yes. Okay. Thank you, Doctor, for confirming presentation screen can be seen. So we will now proceed and go with our presentation. So Dhofar Insurance believes in values, mission and vision to become the insurer of choice for all stakeholders. And we would like to be acknowledged as the first class insurer that adheres to the highest standards of business principles and ethics. With this background, we take all our actions in our company, and we want to be the best-in-class for all our stakeholders, whether they are shareholders, whether they are investors, whether it's the regulator, our employees and above all, our customers. So this presentation shows the Board of Directors who were there for 2024, and this is for your noting. Management team is there. We have a professional management team with vast experience in the insurance field, and they are guiding the company towards the direction and vision as envisioned by our Board of Directors. Dhofar Insurance company was incorporated in 1989, and we have been serving thousands of families across Sultanate of Oman. We are the only company which has presence all across the Oman from small towns to big towns, our branches are everywhere, and we are taking the insurance services at the doorstep of our customers. Our strength, as I was talking, we have a diverse distribution network. We have strong large network with good distribution channels. We have reinsurance support from highest rated reinsurance partners. As you are aware that a lot of large risks, which are there, they need reinsurance support. And when we take that support we ensure that we take it from the highest-rated reinsurer so that at the time of need, the claim payment can be prompt and there are no gaps in that. We have well-trained human capital with close to now almost reaching 400 employees with 85% harmonization. Technically, we have been working on technology and digital channels, and we are investing heavily in next 3 to 4 years in technology, digitalization and core systems implementation. We have our own call center, which we use for both inbound as well as outbound calls, and we are working towards a sustainable best practices in our space. Considering our performance, we have been awarded at various times. We were awarded best performing company in mid-cap category. We were awarded as the best company in Oman Leadership Awards. And similarly, we have also received award as the most trusted brand in the insurance space. As well as in the finance, our CFO was awarded as the Best CFO and Digital Transformation Award also was given to us at OER DX Oman Awards. Now we will take you through to the market scenario in Oman. When we look at various companies which are working in insurance space, overall business in Oman in 2024 for whole market was OMR 500 million plus. Out of that, Dhofar Insurance has done OMR 91 million, which is 17.8% market share. Dhofar Insurance has improved the market share by 2.1% over the same period of time last year. So with this, Dhofar Insurance is unequally #1 insurance company in Oman today. And we have performed not only well in the top line, we have also performed well in other areas, which we will bring to your notice in the subsequent slides. So I would like to have your attention on this slide. Here, when we look at gross written premium, Dhofar Insurance has grown by 23% from OMR 73.95 million to OMR 91.07 million, which is a commendable achievement. When we look at insurance revenue as per IFRS 17, here also, we have grown from OMR 70 million to OMR 84 million, which is a growth of 20%. Insurance service results have also improved quite significantly from 2023, OMR 1.42 million. We have improved to OMR 3.37 million, which is a growth of 138%. When we look at profit after tax, we have a profit after tax of OMR 4.18 million compared to OMR 6.17 million, which is due to the one-off gain which we had in 2023 from the investment in one of the companies. And LOB mix, which is line of business mix when we look at, we have a strong presence in general and followed by life and medical. This is another table which shows the same numbers which we showed on the -- in the graphical form, which shows that insurance revenue growth of 20%, insurance service results, 138% growth and profit after tax, OMR 4.18 million compared to OMR 6 million last year, as explained in the previous slide. Other important area which I would like to draw your attention to is investment composition. We have a well-diversified investment and we are working on conservative way so that we do not put risk into our investments and we give stable returns to our shareholders as well as we protect the policyholders' fund. Dividend, Dhofar Insurance has been consistently paying dividend in the last 4 years, and the number is there for you to see. And this year, AGM has approved OMR 0.015 dividend for the distribution to the shareholders. And on the solvency and capital, we, today, we have a share capital of OMR 13 million and which is adequate to take care of our solvency provision. And we are above the solvency requirement of the regulator. So this is another slide which you may like to have a look at where we -- the slide shows that shareholders' equity from OMR 21.92 million in 2019 has gradually and consistently improved to OMR 39.29 million in 2024. And net asset value has also improved from OMR 0.219 in 2019 to OMR 0.348 in 2024. So this shows that in both the parameters, company is consistently performing. So with this, we express our deep gratitude and appreciation to our leader, his Majesty Sultan Haitham bin Tariq for his vision and guidance which sustained the country's success growth and prosperity. We thank Ministry of Commerce and Industry and Investment Promotion and the Capital Market Authority, which is now called FSA for the continued guidance and support. We also would like to thank the shareholders, reinsurers, customers and employees of Dhofar Insurance Company for their trust and continued support. Thank you very much, and we are now open for any questions if you may have, and we will address those.

[Foreign Language]

So thank you, everyone, for your patience and listening to us. And in case there are no questions, we thank all of you for attending this presentation. Thank you very much.