Oman Reinsurance Company SAOG (ORIC) Earnings Call Transcript & Summary

Hey, good morning, everyone. We're pleased to present the half year results for Oman Re for 2025. So these are the key highlights for the performance of the company. Firstly, in the top left, we have reinsurance revenue, which is the IFRS 17 equivalent of gross earned premium, which was calculated under IFRS 4. So for 2025, this is OMR 26.5 million, which is 8% higher than the same period last year. Combined ratio is 95.4%, which is an improvement compared to 98.2% in 2024. The improvement is primarily due to the events that happened last year for flooding in the U.A.E. happened in April. The profit after tax is OMR 2.2 million, which is more than double the same period last year. And finally, the annualized return on equity is at 11.4%, so almost double 2024. The reinsurance revenue, which on the left-hand side has shown good growth. So it's increased by OMR 2 million, while the expenses on the right-hand side have been relatively stable. So overall, when we look at the expenses as a proportion of the gross written premium, we can see that it has fallen slightly from 5.1% to 5.0%. So this is good. We are growing and the expenses are stable. On the combined loss ratio, the total loss ratio on the left-hand side for 2024 was 98.2%. For 2025, it was 95.4%. Primarily, the improvement is from falling business acquisition costs, and then we have also stable management expenses seen in the previous slide. And also, we have improved loss experience. However, the interest rate and yield reductions compared to last year have had an offsetting impact. We've seen continued strong investment returns based on our prudent investment strategy, which is driven by our risk profile. Invested assets on the left have increased by 22% with the investment income on the right, increasing by 25%. So overall showing an investment return improvement from 4.8% to 4.9%. And profitability is increasing from -- it was OMR 1.1 million, increasing to OMR 2.2 million in 2025, and that gives the annualized return on equity of 11.4% compared to 6.4% last year. And finally, the last slide on the left shows the shareholders' equity, which is now at OMR 38.8 million compared to OMR 33.5 million, 16% growth, driven by good profitability. And also, we see that the book value per share is now at OMR 0.117. So that's about a 36% increase on the IPO price in 2022, which was 0.086 basis and it's increased over the last year, which was OMR 0.101 basis. So overall, very good start to the year. We're very happy. And that's it from our side for the company results. So if you have a question, please raise your hand and we'll be happy to take it. Okay. If there are no questions, then we'll be concluding the meeting. If you subsequently do have any questions, then just please write to the Investor Relations e-mail address that's provided on our website, and we'll be happy to respond. Thank you, everyone.