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

Welcome to today's investor presentation. From Dhofar Insurance, we welcome all the participants who have joined today. We will take you through the presentation. And then in the end, we will look forward to any questions from your side. I hope we are audible to you. So we'll start the presentation. So Dhofar Insurance, the vision is to become insurer of choice for all the stakeholders, and we believe in our values. And for that, we work to have integrity in all our actions and care for community is on top of our priority. So this year, new Board was elected. So the new members of the Board are in front of you. This is the key management team members for Dhofar Insurance. So just to give you a background of Dhofar Insurance. Dhofar Insurance started in 1989 with a very small office company. And today, we are present in 42 locations in many small and big towns of Oman. And we are taking the insurance service to the doorstep of our customers. So we are present in all the wilayats of Oman. And Dhofar Insurance has an independent diversified Board with different Board subcommittees headed by independent directors. And management team is a professional management team with well-qualified and experienced professionals running various departments. So key areas where Dhofar Insurance has focused in the last few years and which has borne good results, we just want to highlight a few of them. One is that we have greatly diversified and diverse distribution network, where we not only rely on our own branch network, but also we have relationship with various strong distribution channels like bancassurance, brokers, agents and other affinity partners. We are supported by highly rated reinsurance partners, which is required for large risks. And for the same, we are having very long-term support with all our reinsurance partners for many decades. Dhofar Insurance has focused quite a lot on the trainings and empowerment of human capital. We are running thousands of manhours trainings every year to train our employees in various areas where their service can be enhanced by better training, not only for the department which they work, but also for their own professional qualification enhancement and also in many soft skills as well. Today, Dhofar Insurance has more than 400-plus employees with 85% Omani employees helping Dhofar insurance to succeed in today's fast-paced environment. On technology side, there is a lot of focus on digitalization, WhatsApp bot, mobile app, plus Dhofar Insurance is investing heavily into new core insurance operating system, which is more than 2 years project where we are investing quite a bit of human capital as well as economic capital to take Dhofar Insurance to the next stage of digitalization, to give best possible service to our customers. And the reason for that is our focus on customer centricity, where all our actions are related to achieving the customer satisfaction. And for that, we also have a 24/7 call center to have a better customer experience and reach to the customer whenever required. Whenever the customer needs, they can approach us through our call center, besides other digitalization means, which are WhatsApp bot and other areas where they can also be in touch with us through our website as well. And we focus on sustainable value creation. For that, our core business activities are fully focused upon, and we don't believe in sudden success, and we want a sustainable long-term success. For that development focus on human capital as well as other areas of development, we always focus upon. A few of the awards and accolades, which Dhofar Insurance received in the previous year are Dhofar Insurance was awarded best performing company in mid-cap category. Dhofar Insurance also got awarded as the Most Trusted Brand in Oman for insurance. So these two are highly valued. And due to that reason, obviously, the management also gets awarded due to success of organization. So we'll now take you through a brief about the market, how the market growth has been in this particular period which we are talking about. So the market has grown by 7% in the first half of 2025. And Dhofar Insurance has grown by 10%, which is higher than the market. And Dhofar Insurance has also increased the market share by 0.3% in this particular period. So when you look at these numbers, you will find that there is sustainability and continuous results and growth, which Dhofar Insurance is able to achieve in this period of time. And this is purely from the business originating from Oman. When we look at the distribution of the overall insurance space in Oman, we will find that national companies, they are having 69% of the business in Oman and the rest is shared between Takaful and foreign companies. So still a very significant business is within the national companies and Takaful companies, that is also, we can say they are also national companies, although they are doing business in Takaful space. Some other key parameters of first half performance. So there is growth in the gross written premium. Dhofar Insurance has grown by 10% in the gross written premium compared to the same period last year. Insurance revenue has grown by 3%. And when we look at the other parameters, which is very significant related to the insurance business, which is insurance service result, there also the growth is around 12% and profit after tax has also grown by 9%. So overall, all parameters, Dhofar Insurance has performed significantly well in first half of 2025. And line of business-wise, if we talk about the 3 licenses which Dhofar Insurance has, which is general insurance license, medical license and life. So general insurance, which has a large different types of products, including motor, property, engineering and other kinds of products. So it forms a significant size of our portfolio. Rest is shared between. Life is also now doing quite well and medical is also performing as per the strategy of the organization. So the same thing if we look at in a tabular form, the insurance revenue has grown by 3%, service results grown by 13%, investment results have improved by 12% and PAT has grown by 9%. And earnings per share is also improved by 5%. Other key areas we want to highlight to you is the consistent dividend paying track record, which Dhofar Insurance has. If we look from 2021 onwards, every year, Dhofar Insurance has paid a dividend based on the company policy and the Board and shareholders' approvals. And capital and solvency, if we look at, we find that there is -- shareholders have also infused and shown confidence in Dhofar Insurance to consistently add to the capital, and it has grown from OMR 11 million to OMR 14 million in the last 4 years. Other key areas, which we want to highlight to you is the shareholders' equity, which has grown quite significantly from 2019 from OMR 21 million approximately to OMR 41 million in H1 2025, which shows the performance and stability on the financial side for Dhofar Insurance. And net asset value has also improved consistently over the last 6 to 7 years, if you look at the number. So this was our brief presentation, and 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 are thankful to Financial Services Authority and Ministry of Commerce and Industry and Investment Promotion for their continued guidance and support. We are also thankful to our customers, shareholders, reinsurers and employees for their continued trust and support. We now look forward to any questions from your side. So participants, in case there is no question, then we can close the meeting. In case if you have a question, please raise your hand. Since there is no question, we are thankful to you for your participation, and we look forward to another interaction in our next presentation. Thank you very much.