Oman Qatar Insurance Company SAOG ($OQIC)

Officially, good morning. Welcome to the MSX discussion session for the full year 2025, and this is the first session for the year 2026. This is the agenda for today's discussion. So there are 8 of the last questions and answers. So I will shed light on the Board of Directors for the previous or the current Board, OC, some snapshot on the financial performance and then key ratios, and then we go to the investment and solvency position. To begin with, the Board of Directors, we have got 7 members chaired by Mr. Salem al-Mannai and the Deputy Chairman is Dr. Musallam Mahad Al Qatan, who is also a Board member in the -- who is also Chairman of ARC Committee. Then we've got Mr. Abdullah Al Mezeini, Board member, NRC Committee and Strategy Investment Committee members as well; Mr. C. M. Unnikrishnan, he is in the Strategy and Investment Committee as well as in the NRC Committee; Mr. Mohamed Al Kharusi, committee member of ARC; Mr. Ahmed El Tabbakh, Chairman of NRC and member of the Committee; and finally, Mr. Chirag Doshi, who is chairing our Strategy and Investment Committee and also sits in the NRC Committee. In terms of the OC or the management here, we've got -- and they're all present in this meeting as well. I've got Mr. Ali Abduladheem Al Lawati, who is our Chief Business Officer; and I've got Mr. Mohammed Jawad, who is our CFO as well as the Investor Relationship and Board Secretary; and I've got Mr. Omar Al Shanfari, Senior Management, Government, HR and we've got over in the call as well with us our compliance Head, Ms. Jawahar and some other OQIC members. In terms of the financial performance, we have summarized for the last 3 years. As you know, there is the IFRS 17 and there is the IFRS 4. So we're slowly deviating from or moving from IFRS 4 to IFRS 17. But then for the sake of comparison, we also like to highlight some of the elements of IFRS 4 as well. Insurance revenue, which is very specific to IFRS 17 in 2023, which was the first year of implementation of IFRS 17, the total revenue generated was OMR 63.7 million, the insurance revenue moved to OMR 69.6 million and then in the last year, which is 2025, nearly OMR 70 million. How is that reflected when it comes to GWP? Again, the trend is upward the same way. So from OMR 59.5 million GWP in 2023, all the way to nearly OMR 73 million in the year 2025. Now if we speak about underwriting income, which is again the language of IFRS 4, in 2023, it was OMR 5.1 million, hiked up to OMR 5.8 million in 2024 and then down to OMR 5 million in 2025. There are a number of reasons there, but then the major contributor in the deterioration of underwriting income for the year 2025 was the performance of medical insurance. And I'm happy to talk more about it later or perhaps in the Q&A session. Investment income was exceptional this year, as you all know, and some of you are experts in that field as well. So the total income from investment activities at OQIC was OMR 2.1 million in the year 2023 and all the way up to 5 million in 2025, and our CFO will talk about it later. The profit after tax in 2023 was OMR 4 million and then from OMR 2.3 million in 2024 to OMR 3.4 million. It's just worth mentioning that the profit after tax in 2025 also includes the Pillar 2 tax that we were subjected to in 2025. And if I remember correctly, it was just over OMR 300,000 in the Pillar 2 tax. So that's not apple-to-apple comparison. But if you want to add to make it apple-to-apple, so we are talking about some OMR 3.7 million to OMR 3.8 million profit after tax before Pillar 2 tax in 2025. The following slide talks about some of the ratios and some of the highlights of the bottom line performance. In terms f the premium mix, again, this is based on the GWP. We have not seen much of change in the portfolio mix. Our strategy did not change. And of course, every year has its own opportunities and its own characteristics. So accordingly, it changes, but there are no major change in our strategy followed in 2024. Retail, again, maintains around between 12% to 13%. Medical increased because the growth of the medical business. Life remains almost the same, the proportion of life into the portfolio. Marine and Aviation changed, and there is -- most of this business, as we all know, it's more fronting, especially aviation element. And what changed mainly is not a new account that we have acquired, a new client we acquired, but it was the timing issue. So what was supposed to be booked in late 2024 got extended and then got booked in Q1 of 2025. So that's the major change. Otherwise, it's the same portfolio. Property shrunk deteriorated in terms of the composition, not because of loss of any major account, but then the composition of property because we've seen growth in marine and aviation and in medical and property remained almost static in terms of the GWP. So we see that the composition of that into the portfolio has gone down and liability almost remained the same. We talk about combined ratio and here, the combined ratio is based on the IFRS 17 not IFRS 4 based on the methodology and formulas, very specific to IFRS 17. So it's still maintained below 100%, but it is in the increasing trend from 96.6% to 98.5%. We don't take the year 2023 as a benchmark. It was the year that we have -- it was a year of merger with legacy Vision Insurance. And it had a very different dynamics. And 2024 was again in the same form of integrating our business and the business got fully integrated in 2024. But there were some impact and mainly the -- means the motor and the medical impact that also took place in 2025. So the performance of 2023 hit us in 2024. That was mainly motor, a lot of cleansing of motor portfolio happened in 2024. And in 2025, there was some under reserving of medical related to 2024, and we took the hit of 2025. Not only that, we have done a proper cleaning and proper fixing of our medical portfolio in 2025. So we paid the under reserving of 2024 that was realized. And we have taken sufficient reserving by end of 2025, not to repeat the same story in 2026. And hence, the combined ratio or the loss ratio or the underwriting income for or all connected has deteriorated slightly. Return on equity 8.9%. This is, again, it's almost apple-to-apple because in 2023, the new equity or the combined equity between legacy division was merged or consolidated. So the new paid-up capital from OMR 10 million to nearly OMR 22 million, [ OMR 21.98 million. ] So the return on that new equity will deteriorate when compared to the previous years, previous to 2023. But then we know the story of 2023 and the investment -- investment income contributed for us in 2025. There's another element that I wanted to highlight here related to investment return on equity and the net profit as well, is that the proper management of cash flow, I think it is something to be -- is very commendable what we have done in OQIC, and it was helped our investment portfolio. So we have injected the business money into investment as well. So there's a growth in the investment portfolio. We have also realized investment gain, but also we have injected a sizable amount of business operational money from the insurance activity into the investment. And one element of that is also the contribution of our size in the medical business. Net asset value per share from 229 in 2023 to 252 in 2025 and a year-on-year growth in the net asset value per share. Return on investment ratios, 2025, again, it's an exceptional year for investment, not necessarily to be -- or definitely will not be the benchmark moving forward. Yes, the start of 2026 also is positive mainly for the Omani security, the MSX the [indiscernible] Borsa, but this might not continue until the end of the year. So it's not the real benchmark. For us, the benchmark could be somewhere 2023, if not 2024, but then not exceeding 5%, but very much around the 4% should be the benchmark. But then again, every year has its own dynamics. With that, my part of the presentation. I hand over now to our CFO to walk us through the financial position and then to the investment and our. Thank you.

Thank you, Mr. Hasan. So moving to the financial, which is based on IFRS 17 calculations. The total paid up share capital has remained the same, OMR 21.99 million in '24 and '25. The net worth total equities jumped from OMR 37.5 million to OMR 40.7 million. Total assets almost same, OMR 109 million to OMR 110 million. Total investments increased by almost OMR 3.5 million to OMR 4 million from OMR 68.6 million to OMR 72 million, which we will highlight in the next slide. Insurance and reinsurance contract assets and liabilities moved in the same direction. So the changes in both are similar, OMR 37.5 million, the assets reduced to OMR 35 million. Similarly, the liabilities also reduced from OMR 65 million to OMR 63 million. A number of employees increased. So 203 in 2024 increased to 215 by end of 2025, mainly due to recruitments and medical insurance. Organization ratio reduced from 82% to 80.5%. The minimum [ harmonization ] ratio applied for the sector is 75%. So we are well above the minimum requirement. Moving to the investment details, we can see that the investment portfolio composition here between 2024 and '25, along with the income from different investment instruments. I want to mention that OMR 72 million is the total investment book by end of 2025 compared to OMR 68.6 million by end of 2024. In terms of the composition, we can see that the company reduced the exposure in fixed deposits from OMR 45 million to OMR 40.2 million. And these funds got deployed in other high-yield instruments such as bonds and Sukuk. So our bond and Sukuk portfolio was OMR 15 million in 2024, which increased to OMR 21.6 million in 2025. In terms of equities and mutual fund from OMR 8.1 million to OMR 9.8 million, which was due to the increase in capital of one of the mutual funds, which OQIC is participating in. In terms of realized and unrealized, in terms of equity -- sorry, in terms of equities, we highlighted OMR 8.1 million to OMR 9.8 million. So this is the investment composition. In terms of investment income, the company generated OMR 5 million from its investment activities compared to OMR 2.6 million in 2024. That gave us a portfolio yield of around 7% compared to 3.8% in 2024. From the pie charts, we can see that the main contributor to this is the move from negative OMR 600,000 realized and unrealized equities in 2024 to OMR 1.9 million in 2025 gain in equity market. In addition to that, still the interest income is increasing from OMR 2.3 million to OMR 2.5 million in 2025 despite the reduction in the [ core ] interest rates. In terms of dividend income, slightly reduced from [ OMR 1 billion ] 900,000 to almost OMR 600,000 due to the investment in mutual fund moving away from individual securities. Going to the solvency position of OQIC. So the solvency position, solvency ratio is indicating how the company can pay its claim, the capability of the company and the higher the solvency ratio, the better the company pay out its liabilities. So as per the risk-based solvency calculations, the company should maintain around OMR 4 million for the general business as a minimum, OMR 2 million for Medical business and OMR 1 million for Life business. As per the calculations for OQIC, we can see that the minimum OMR 10 million is kept here in the first column. And from 2023 to 2025, we are seeing that the company is maintaining a very healthy solvency ratio. The minimum here is OMR 17.22 million compared to OMR 17 million last year and OMR 12 million in 2023. So that gives us a surplus in 2025 amounting to almost OMR 33 million compared to OMR 29.6 million in 2024. So this indicates how OQIC is a strong company in terms of solvency position and its ability to pay claims on time. So with this, we are ending our presentation for today, and we are opening the floor for any question and answer.

We welcome any questions that you might have for today's session. Anybody has any questions here? If you are wondering despite, why are we are sitting in the office, I would say, 95%, 97% of our workforce are working remotely today. But we decided to come here as we speak, or has not indicating any -- all right. So I take no questions to be asked today. So thank you very much, ladies and gentlemen, for your presence today. we'll see you next time. Thank you.